Owen's Electronics has nine operating plants in seven southwestern states, Sales for last year were $100 million, and the balancesheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (includingfixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.CashAccounts receivableInventoryCurrent assetsFixed assetsAssetsTotal #ssetsNew fundsBalance Sheet (in 3 millions)56 Accounts payable****1Liabilities and Stockholders Equity24Accrued wages27 Accrued taxes$ 57Notes payableCommon stockRetained earnings$ 101 Total liabilities and stockholders' equityOwen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 40 percent.If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the growth.Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g.. $1,234,567).44Current liabilities$ 196125:37141931$ 101

Sales growth gauges how much a company's sales have increased over a given time period, usually from…

If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the growth. Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g.. $1,234,567).

If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the growth. Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g.. $1,234,567).

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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A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: Instructions: Round your responses to 2 decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million
A dry cleaning store is expected to make annual cash flows forever. The cost of capital for the store is 14.01 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 3.49 percent. What is the value of the dry cleaning store if the cash flow in 5 years from today is expected to be $236,000.007 O $1,955,702.16 (plus or minus 10 dollars) O $1,408,521.54 (plus or minus 10 dollars) O $1,164,612.73 (plus or minus 10 dollars) O $2,243,346.01 (plus or minus 10 dollars) $1.084,511.06 (plus or minus 10 dollars)
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PLEASE HELP WITH SHOWING THE COMPLETE CASH FLOW DIAGRAM, FACTOR FORMULA, EQUATION, EXCEL FORMULA, EQUATION AND STEPS. Titan, LLC has a new maintenance cost of $500 at the end of year 1, then $150 at the end of year two that increases by $50 (G) to year 10. How much should Titan, LLC set aside presently to pay for this new expense if interest rates are 8% compounded annually?
Suppose you have an account that will grow to $253,000.00 in 25 years. It grows at 7.5% annual interest, compounded monthly, under the current investment strategy. The owner of the account, however, wants it to have $368,000.00 after 25 years. How much additional monthly contribution should they make to meet their goal?
How much will $3,000 invested at the end of each year grow to in 4 years, assuming an interest rate of 11% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $13,663 $14,129 О $12,729 $13,200
A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 5 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. million b. The instant after it pays out current profits as dividends. million
With a present value of $125,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 7.1%, compounded quarterly? (Round your answer to the nearest cent.)$_____
You wish to have $21,000 in 8 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $21,000, 8 years from now. (Round your answer to the nearest cent.)
Pena Company is considering an investment of $21,705 that provides net cash flows of $6,700 annually for four years. (a) If Pena Company requires a 7% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of this investment? Years 1-4 Initial investment Net present value Net Cash Flows 6,700 x PV Factor Required A Present Value of Net Cash Flows 0 21,705 Required B >
Assume today is January 1 and you plan to invest $4,000 today in an account earning interest of 6% compounded semi-annually. You would like to calculate the amount your investment will grow to three years from now.Question: What should be the correct "n" and "i" to use for factor table purposes in order to answer your question?
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