Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last year's notes payable $50 Last year's total assets = A0* $600 Last year's accruals $30 Last year's profit margin = PM 5% Target payout ratio 60% Select the correct answer. a. $147.0 b. $144.1 c. $155.7 d. $149.9 e. $141.2
Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last year's notes payable $50 Last year's total assets = A0* $600 Last year's accruals $30 Last year's profit margin = PM 5% Target payout ratio 60% Select the correct answer. a. $147.0 b. $144.1 c. $155.7 d. $149.9 e. $141.2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to
| Last year's sales = S0 | $350 | Last year's accounts payable | $40 |
| Sales growth rate = g | 30% | Last year's notes payable | $50 |
| Last year's total assets = A0* | $600 | Last year's accruals | $30 |
| Last year's profit margin = PM | 5% | Target payout ratio | 60% |
Select the correct answer.
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