Quiz 1

Don't use ai to answer I will report you answer.

4)Johnson and Johnson had a return on equity in 2020 of 31.4%and paid out 36% of it earning as depends it earned a net income of $1.625million on a book value of equity of $5,171million .as consequence of the covid pandemic .the return on equity is expected to drop 25%in 2021land that the dividend pay out ratio will remain unchanged A) Estimate the growth rate in earnings based upon 2020 numbers B)Estimate the growth rate in 2020when the ROE drops from 31.4% to 25%

Origin Energy has just announced its profits for 20212021. It has been a good year, with the firm having earned a 24.424.4% return on the retained profits that it invested in new projects. It tells investors that it will shortly be paying out 26.626.6% of these earnings to them through a cash dividend of $$55.855.8 per share. Anticipating the investors might be unhappy with such a sharp drop from the 84.084.0% of its profits that they returned to investors in 20202020, the firm explains that this decrease is due to it currently having significantly more profitable investment opportunities as this time. A combination of lighter government regulation and subsidies for renewable energy market investment have given an unforeseen boost to their sector. Origin Energy believes that this coming year it will be able to increase its profitability even further. A combination of the continued impact of the previously mentioned factors with further economic stimulus from the government will see its…

2. Does the company have enough cash and liquidity to survive an economic slowdown? Enhance the answer with a clear conclusion   Ans. The financials of WeWork doesn't seem to be much profitable, we can assume that is because of the pandemic. In the year 2022, the revenue of the first quarter was $765 million which is an increase of 6-7% in a quarter. Net loss was $504 million. Because of the increase in interest rates, it is hard for WeWork to get more loans to finish off its debt and the investors are not much interested as they can interpret the future outcomes by looking at the current balances of the company. The revenue in the third quarter was $817 million which is an increase of 24% year-over-year. The company has $500 million in undrawn debt commitments from SoftBank and has said it expects to end 2022 with $300 million in cash, less than one-third of what it had at the end of 2021. Its debt contracts allow it to borrow another $500 million. As the cash and liquidity of WeWork…

Consider the following data for NikeNike ​Inc.: In 2022​, it had $48,460.00 million in sales with a 10.0​% growth rate in 2023​, but then slows by 1% to the​ long-run growth rate of 5.0​% by 2028. Nike expects EBIT to be 16​% of​ sales, increases in net working capital requirements to be 5​% of any increases in​ sales, and capital expenditures to equal depreciation expenses. Nike also has ​$13,235.72 million in​ cash, ​$12,904.54 million in​ debt, 1,803.66 million shares​ outstanding, a tax rate of 21​%, and a weighted average cost of capital of 9.0​%.a. Suppose you believe Nike​'s initial revenue growth rate will be between 7.5% and 12.5% ​(with growth slowing linearly to 5.0 % by year 2028​). What range of prices for Nike stock is consistent with these​ forecasts?b. Suppose you believe Nike​'s initial revenue EBIT margin will be between 15% and 17% of sales. What range of prices for Nike stock is consistent with these​ forecasts?c. Suppose you believe Nike​'s weighted average cost of…

Consider the following data for NikeNike ​Inc.: In 2022​, it had $48,460.00 million in sales with a 10.0​% growth rate in 2023​, but then slows by 1% to the​ long-run growth rate of 5.0​% by 2028. Nike expects EBIT to be 16​% of​ sales, increases in net working capital requirements to be 5​% of any increases in​ sales, and capital expenditures to equal depreciation expenses. Nike also has ​$13,235.72 million in​ cash, ​$12,904.54 million in​ debt, 1,803.66 million shares​ outstanding, a tax rate of 21​%, and a weighted average cost of capital of 9.0​%.a. Suppose you believe Nike​'s initial revenue growth rate will be between 7.5% and 12.5% ​(with growth slowing linearly to 5.0 % by year 2028​). What range of prices for Nike stock is consistent with these​ forecasts?b. Suppose you believe Nike​'s initial revenue EBIT margin will be between 15% and 17% of sales. What range of prices for Nike stock is consistent with these​ forecasts?c. Suppose you believe Nike​'s weighted average cost of…

You are interested in determining the intrinsic value of Hoffman Inc.  Your analysis shows that the firm’s growth rate will drop from its current pace by 20% each of the next two years, and then you estimate that dividends will continue to grow at the year 2 rate, with the same dividend policy in place, indefinitely.  Lastly, your estimate of the required return on the firm’s equity is 12%.  Hoffman’s recently published annual report shows the following financial relationships: Assets = 1.4 x Equity Current Assets = 1.7 x Current Liabilities Sales = 1.5 x Assets Net Income = 8% x Sales Dividends = 30% x Net Income Earnings per share (Basic) = $0.80 per share Required:   Use the multi-period DDM to estimate the intrinsic value of the company’s stock now, at the beginning of year 1.

You are interested in determining the intrinsic value of Hoffman Inc.  Your analysis shows that the firm’s growth rate will drop from its current pace by 20% each of the next two years, and then you estimate that dividends will continue to grow at the year 2 rate, with the same dividend policy in place, indefinitely.  Lastly, your estimate of the required return on the firm’s equity is 12%.  Hoffman’s recently published annual report shows the following financial relationships: Assets = 1.4 x Equity Current Assets = 1.7 x Current Liabilities Sales = 1.5 x Assets Net Income = 8% x Sales Dividends = 30% x Net Income Earnings per share (Basic) = $0.80 per share Required:   If all of your expectations remain as shown, except that, on the last day of year 1, the required return decreases by 1%. What would be your holding period return for the year?

Read the scenario below and answer the questions that follow. A company is under pressure from influential shareholders to change its dividend policy. The company has always followed the residual dividend policy, but the influential shareholders feel that the company needs to change to a stable pay-out ratio policy. The company just reported earnings of R232m for the year ended 31 March 2024. The company is considering the following investment opportunities for the upcoming financial year: Investment opportunity A BUD C E Cost R72m R62m R110m R96m R48m Internal rate of return 14.28% 13.03% 15.67% 16.01% 13.79% The company's cost of capital is 13.5% and its target capital structure is represented by a debt-to-assets ratio of 40%. The company has 28m ordinary shares outstanding.

A. Quantitative Problem: Beasley Industries' sales are expected to increase from $5 million in 2017 to $6 million in 2018, or by 20%. Its assets totaled $3 million at the end of 2017. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017, current liabilities are $790,000, consisting of $140,000 of accounts payable, $400,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 60%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not round intermediate calculations.  B. What is Mitchell's Target fixed assets/Sales ratio as percent?  C. If Mitchell's sales increase 50%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?

I am looking for help with financial accounting question

Consider the following data for Nike Inc.: In 2022, it had $46,710.00 million in sales with a 10.0% growth rate in 2023, but then slows by 1% to the long-run growth rate of 5.0% by 2028. Nike expects EBIT to be 16% of sales, increases in net working capital requirements to be 5% of any increases in sales, and capital expenditures to equal depreciation expenses. Nike also has $12,997.00 million in cash, $12,627.00 million in debt, 1,574.00 million shares outstanding, a tax rate of 25%, and a weighted average cost of capital of 9.0%. a. Suppose you believe Nike's initial revenue growth rate will be between 7.5% and 12.5% (with growth slowing linearly to 5.0% by year 2028). What range of prices for Nike stock is consistent with these forecasts? b. Suppose you believe Nike's initial revenue EBIT margin will be between 15% and 17% of sales. What range of prices for Nike stock is consistent with these forecasts? c. Suppose you believe Nike's weighted average cost of capital is between 8.5%…

ClapTrap is a rapidly growing image messaging company. The company's growth strategy requires rapid reinvestment currently, with dividend payouts increasing as growth opportunities gradually disappear. You have the following financial information about ClapTrap: Earnings in the most recently concluded fiscal year were $6.28. The company will retain all its earnings this year (from t=0 to t=1 ), reinvesting in new projects with a return on new investment of 44.0%. The next year (from t=1 to t=2 ), the company will retain 85.0% of its earnings. Return on new investment is expected to be 30.0%. In the following year (from t=2 to t=3 ), the company will retain 69.0% of its earnings with an expected return on new investment of 20.0%. The company will then enter a period of stable growth, retaining 49.0% of its earnings in perpetuity. a) What are the expected dividends per share for each period from t=1 to t=3 ?  The expected dividends per share for t=1 is $$.(Round your answer to four…

Consider the following information that you propose to use to obtain an estimate of year 2004 EPS for the MacLog Company.       Estimated   Year 2019   Year 2020 GDP 11,000 Billion   GDP growth   3.5% Sales per share $800   Operating profit margin   12% Depreciation/Fixed Assets   14% Fixed asset turnover   2 Interest rate   3.5% Total asset turnover   0.7 Debt/Total assets   45% Tax rate   36%   In addition, a regression analysis indicates the following relationship between growth in sales per share for MacLog, and GDP growth is   %Δ Sales per share = 0.015 + 0.75(%Δ GDP)   Refer to Exhibit 9.6. Calculate the firm's level of Total Assets per share for the year 2020.   a. $1,385.77     b. $1,113.58     c. $1,050.65     d. $1,065.67     e. $1,190.06

DAS Co. is preparing its financial forecast for next year and its AFN is negative. This means that Select one: O a. the predicted change in total assets must be negative. O b. sales growth must be negative. O c. the dividend payout ratio must be greater than the predicted growth rate in sales. O d. the predicted change in spontaneous liabilities must be greater than the predicted change in total assets.

Based on the following information prepare the Pro Forma Statement of Financial Position as at 31 December 2024. (Ignore the investment opportunity for 2025.) Please include detailed steps and explain what it means to ignore the investment opportunity. STELLIES ELECTRONICS LTD: PROJECTIONS FOR 2024 AND 2025 After posting excellent sales and net profit in the previous year Stellies Electronics Ltd set its sights on growth and innovation as it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and social responsibilities.   The following reflects the financial position of the company on 31 December 2023: The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accounts receivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share…

Suppose the risk of the company changes based on an unanticipated decrease in the Free Cash Flows by 10% annually during the years 2015, 2016, and 2017. What are the implications of the change in present value based on risk? In other words, what does the change mean to the company, and how would a financial manager interpret it?

ABC Corp - had sales of $375million in 2023 and you expect sales to grow at a 3% in 2024, 2% in 2025 and 1% in 2026. Given, past profitability and investment needs, you expect Earnings Before Interests and Taxes (EBIT) to be 9% of sales, increases in net working capital (NWC) requirements to be 8% of any increase in sales, and net investment (CAPEX in excess of depreciation) to be 7% of any increase in sales. The company has $35 million in cash, $7 million in debt, 15 million shares outstanding, Tax rate is 20% of EBIT and a weighted average cost of capital (WACC) of 11% . What is your estimate of the value of the stock in January 2024?

I need some explanation of a problem. I ended up with the right answer but I'm not quite sure how I did.   Here is the question: Garlington Technologies Inc.'s 2019 financial statements are shown here. Suppose that in 2020 sales increase to $4.4 million and that 2020 dividends will increase to $200,000. Forecasting the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 12%. New financing will be with a line of credit. Assume it will be added at the end of the year. Cash does not earn any interest income.   Answer $98,000                   Income statement for December 31, 2019         Sales $4,000,000       Operating costs 3,200,000       EBIT $800,000       Interest 120,000       Pre-tax earnings $680,000       Taxes (25%) 170,000       Net income $510,000       Dividends $190,000                 Balance Sheets as of December 31, 2019…

Suppose that Maphisa Plc has the following balance sheet and that sales for the year just ended were $7 million. The firm also has a profit margin of 27 percent, a retention ratio of 20 percent, and expects sales of $8 million next year. If all assets and current liabilities are expected to grow with sales, what additional funds will Maphisa Plc need from external sources to fund the expected growth? Assets Liabilities and Equity

I need guidance with this financial accounting problem using the right financial principles.

Please provide the solution to this financial accounting question with accurate financial calculations.

I am looking for a reliable way to solve this financial accounting problem using accurate principles.

Solve this problem with the explanation

Your company doesn't face any taxes and has $755 million in assets, currently financed entirely with equity. Equity is worth $50.50 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: State Recession Average Boom   Probability of State .20 .60 .20   Expect EBIT in State $105 million $180 million $240 million The firm is considering switching to a 20-percent debt capital structure, and has determined that they would have to pay a 10 percent yield on perpetual debt in either event. What will be the standard deviation in EPS if they switch to the proposed capital structure? (Round your intermediate calculations and final answer to 2 decimal places except calculation of number of shares which should be rounded to nearest whole number.)

I want to this question answer for General accounting question not need ai solution

Can you solve this general accounting problem with appropriate steps and explanations?

Give true solution for these general accounting question