a firm believes that demand and supply conditions are likely to remain the same for the next 5 years, so that the number of units sold will remain constant. it also expects inflation to be 5% a year for the next 5 years. sales for the year just ended with $1 M.
forecasted revenues will rise to $1.05 M next year and will increase at 5% per year for the next 4 years.
a firm believes that demand and supply conditions are likely to remain the same for the next 5 years, so that the number of units sold will remain constant. it also expects inflation to be 5% a year for the next 5 years. sales for the year just ended with
Galehouse Gas Stations Inc. expects sales to increase from $1,580,000 to $1,780,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. His firm has an 8 percent return on sales and pays 30 percent of profits out as dividends. a. What effect will this growth have on funds? decrease by The cash balance will b. If the dividend payout is only 5 percent, what effect will this growth have on funds? The cash...
Question 4 (1 point Last year the Simple Company sold 10,000 units of a product for $25. For this year the marketing manager believes the firm should decrease price to $20. The marketing manager is now trying to forecast sales and revenue for this year. If demand for the product is inelastic and all other market conditions remain the same, which of the following should MOST LIKELY NOT be part of the forecast? overall unit sales may increase to 11,500...
ICP 3 Bundy Corp. manufactures luxury toys for specialty toy stores. For the year just ended, Bundy had sales of 900 units and had the following operating results: Bundy Corp. Variable costing income statement For the year ended December 31 $1,800,000 Sales Variable costs: Manufacturing Selling and administrative 630,000 360,000 990,000 Contribution margin 810,000 Fixed costs: Manufacturing Selling Administrative 180,000 225,000 90.000 495,000 Operating income Income taxes (40%) 315,000 126,000 Net income $ 189,000 Bundy has a capacity of 1,500...
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $9.5 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $7.5 million next year Liabilities and Equity Assets Current assets Fixed assets $ 725,000 Current 1iabilities $1,045,000 4,500,000 Long-term debt 1,750,000 2,430,000 Total liabilities $5,225,000 Equity Total assets $5,225,0o0 and equity If all assets and current liabilities...
7. DPS CALCULATION: Warr Corporation just paid a dividend of $1.50 a share (that is, Do-$1.50). The dividend is expected to grow 7% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? (Chapter 9) 3 8. CONSTANT GROWTH VALUATION: Thomas Brothers is expected to pay a S0.50 per share dividend at the end of the year (that is, Di S0.50). The...
Okamoto Industries has just published their financials for FY 2018. They generated JPY 85,450,000,000 in sales and maintained their 35% gross margin and 15% net margin. During that year the company had debt outstanding of JPY 8,232,000,000 with a 3.65% coupon rate. The company was taxed at the 21.5% rate. The company also had depreciation charges of JPY 635,000,000. Fixed capital investment was 85% of depreciation and working capital investment was 2.6% of sales. The company believes that it can...
Poulsen Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. Under the new tax law, the equipment for the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t= 0. At the end of the project's life, the...
Desai Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. No change in net operating working capital would be required. This is just one of many projects for...
Desai Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. No change in net operating working capital would be required. This is just one of many projects for...
Q1 Given the following data for X (number of units sold), a normally distributed random variable. 1. Calculate E[X] or the mean of unit sales and S[X] or the sample standard deviation of unit sales using Excel. Calculate E[X] using "=AVERAGE( )" in Excel. 2. Calculate S[X] using "=STDEV.S( )" in Excel. Round-off each to the nearest unit. Think of this sample of data being collected from one market in the last five years, or think of it as being...