Homework Answers
BJ Company's working capital and all its expenses vary directly with sale.
Firm is operating at 86% capacity. And the firm wants no additional external financing of any sort.
Tax rate = 21%
Divident payout ratio = 25%
The statement related to next year's pro forma that must be correct is:
c) The firm cannot exceed its internal rate of growth.
If the actual growth rate of the firm is greater than the sustainable growth rate then working capital can be borrowed. Since they want no external financing, they will not exceed the internal growth rate.
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BJ Company's networking capital and all of its expenses vary directly with sales. The firm is...
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1. Compute the external financing needed to support the projected annual sales growth. The most recent...
1. Compute the external financing needed to support the
projected annual sales growth.
The most recent financial statements for Fleury, Inc., follow.
Sales for 2012 are projected to grow by 20%. Interest expense will
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remain constant. Costs, other expenses, current assets, fixed
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Sales are expected to increase by 3 percent next year
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1. Compute the external financing needed to support the
projected annual sales growth.
The most recent financial statements for Fleury, Inc., follow.
Sales for 2012 are projected to grow by 20%. Interest expense will
remain constant. The tax rate and the dividend payout rate will
remain constant. Costs, other expenses, current assets, fixed
assets, and accounts payable increase spontaneously with sales. If
the firm is operating at full capacity and no new debt or equity is
issued, what external financing...
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