a. Will external financing be required for the company during the coming year? Yes O No b. What would be the need for external financing if the net profit margin went up to 9.00 percent and the dividend payout ratio was increased to 50 percent? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567). Input your answer as positive a value. Required new funds Cash Accounts receivable Inventory Assets Plant and equipment Total assets Balance Sheet End of Year (in $ millions) Liabilities and Stockholders' Equity $ 29 Accounts payable $ 65 44 Accrued expenses 39 86 Other payables 52 $ 153 Common stock 58 Retained earnings 98 $ 312 Total liabilities and stockholders' equity $ 312
Conn Man’s Shops, a national clothing chain, had sales of $390 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 35 percent. The
The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 20 percent is
All balance sheet items are expected to maintain the same percent-of-sales relationships as last year,* except for common stock and
*This includes fixed assets, since the firm is at full capacity.
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