The company Jalil Corp is planning its operations in the coming year and the board of directors asked you to prepare a forecast regarding the Additional Fund Needed. The company operates at full capacity. The data used for the calculation of forecasting funding requirements is below. The Board of Directors plans a change in dividend policy, initially the Payout Ratio of 10% was increased to 50%.

Question

How much is the need for additional funds in the coming year based on the AFN (Additional Fund Needed) approach, if the dividend policy changes from a Payout Ratio of 10% to 50%?

Last year\'s sales = S0 = IDR 300.
Accounts payable last year was IDR 50.-
Sales growth rate = g = 40%
Notes payable last year was IDR 15.0
Last year\'s total assets = A0 * = IDR 500.0
Last year\'s accruals were IDR 20.0
Last year\'s profit margin = PM = 20.0%
Last year\'s payout ratio = 10.0%

Make an analysis and discuss the financial conditions above!

Answer rating: 100% (QA)

The more formal equation for AFN is AFN AS 0 S LS 0 S MS 1 ... View the full answer