Suppose that XYZ Inc. plans on growing substantially next year. All Assets, Spontaneous Liabilities and Sales...

 

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Suppose that XYZ Inc. plans on growing substantially next year. All Assets, Spontaneous Liabilities and Sales are planned to grow at a rate of 25% over the next year. The planned dividend payout ratio in 2020 is to be 60% and the Net Profit Margin and Tax Rate are estimated to remain the same as in 2019. Additionally, the Operating Profit Margin next year is estimated to be 8%. 5) How much new assets need to be purchased next year? 6) What is the estimated Sales for 2020? 7) What is the 2020 estimated Net Income 8) What is the 2020 estimated Dividend? 9) How much Outside Funds will be needed in 2020? Suppose that XYZ Inc. plans on growing substantially next year. All Assets, Spontaneous Liabilities and Sales are planned to grow at a rate of 25% over the next year. The planned dividend payout ratio in 2020 is to be 60% and the Net Profit Margin and Tax Rate are estimated to remain the same as in 2019. Additionally, the Operating Profit Margin next year is estimated to be 8%. 5) How much new assets need to be purchased next year? 6) What is the estimated Sales for 2020? 7) What is the 2020 estimated Net Income 8) What is the 2020 estimated Dividend? 9) How much Outside Funds will be needed in 2020?

Answer rating: 100% (QA)

5 To calculate the amount of new assets that need to be purchased next year we need to use the formu... View the full answer