Solve for (Additional Funds Needed)The following is the statement of financial position of Marbell Company, for 20X4.Marbell CompanyStatement of Financial PositionAs of December 31, 20X4(in thousands of pesos)Liabilities and Stockholders' EquityAccounts payableNotes payableAccrued expensesAssetsCashP150900P900Accounts receivable30075Current AssetsP1650Current liabilitiesP1275Fixed assets600Common stockRetained earnings750225Total liabilities andTotal assetsP2250stockholder's equityP2250Sales for 20X4 were P3,000,000. Sales for 20X5 have been projected to increase by 20%.Assuming that Marbell Company is operating below capacity, calculate the amount of new fundsto finance growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

Additional Fund Requirement The purpose of calculating the additional fund requirement to know how…

Answered: Total liabilities and Total assets…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Company has the following cash flow stream. CF1 = 486 CF2 = 687 CF3 = 840 CF4 = 938 Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, company has 32 millions debt, with 51 millions shares outstanding. What is the stock price, P0 , today?
Heinfeldt Inc. forecasts the free cash flows (FCFs) (in millions) shown below. The weighted average cost of capital (WACC) is 12%, and the FCFs are expected to continue growing at a 4% rate after Year 3. The firm has $168.05 million of market - value debt, but it has no preferred stock or any other outstanding claims. There are 50 million shares outstanding. Year 1 2 3 FCF $80 $ 130 $200 a. What is the estimated stock price today ( Year 0)? b. Set up a simple Excel data table where you show how the estimated intrinsic value varies as the long - run growth rate varies over the following range (2.00%, 2.25%, 2.50%, 2.75%, 3.00%, 3.25%, 3.50%, and 4.75%) assuming everything else stays constant.
A firm's current market value of equity is $100 million. It has one million shares outstanding. The firm's equity multiplier is one, and it had sales of $50 million last year. Its profit margin was 5%. What is the firm's implied price-earnings ratio? O 40 O5 O 16 O 20 0 8
7. In future periods, YZX Inc. is expected to maintain a dividend payout 40%, a net profit margin of 4.6%, a total asset turnover of 2.2, and an equity multiplier of 1.35. What is YZX's projected sustainable growth rate? 5.46% 8.20% 8.55% 9.00%
Leon Inc. has the following capital structure, which it considers to be optimal: Debt 25% Preferred stock 15 Common equity 60 Leon’s expected net income this year is $34,285.72, its established dividend payout ratio is 30%, its federal-plus-state tax rate is 25%, and investors expect future earnings and dividends to grow at a constant rate of 9%. Leon paid a dividend of $3.60 per share last year, and its stock currently sells for $54.00 per share. Leon can obtain new capital in the following ways: New preferred stock with a dividend of $11.00 can be sold to the public at a price of $95.00 per share. Debt can be sold at an interest rate of 12%. Leon has the following investment opportunities that are average-risk projects: Project Cost at t=0 Rate of Return A $10,000 17.4% B 20,000 16.0 C 10,000 14.2 D 20,000 13.2 E 10,000 12.0 Calculate the Retained earnings breakpoint. Assume that Leon does not want to issue any new common stock.
HCB, Inc.free cash flows for next year (FCF1) are expected to be $5 million. Free cash flows are expected to grow at a rate of 6% forever. It also has the following financial information: Market value of HCB Debt = $70 million Short-term investments = $15 million Book value of equity = $60 million Total Assets = $80 million Shares outstanding = 2.5 million Required return on stock = 11% WACC = 9% Calculate HCB's intrinsic value per share. $30.51 $33.56 $36.91 $40.61 $44.67 - the correct answer Do not use Excel!
8
Normaltown Corporation An analyst has predicted the free cash flows for Normaltown Corporation for the next four years: YEAR 2004 FCF $13 million 2005 $17 million 2006 $23 million 2007 $28 million After 2007, the free cash flows are expected to grow at an annual rate of 4%. The weighted average cost of capital for Normaltown is 14%. If the market value of the firm's debt is $110 million, find the value of the firm's equity. $158.77 million $89.39 million $216.00 million $119.00 million
Am. 157.
A firm retains earnings of $40,000. What is the total external financing needed if this company, with $120,00 O in assets, has projected a growth rate of 8 percent? Multiple Choice Zero $3,200 $30,400 $9,600 $100,00 0
Intro Nickelon's free cash flow during the current year is $150 million, which is expected to grow at a constant rate of 5% in the future. The weighted average cost of capital is 11%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals Submit
Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Current Assets may be considered negligible. Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1

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