Questions
1. Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2016 to...

1. Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2016 to $9.25 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 70%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.

2. Assume that an otherwise identical firm had $6 million in total assets at the end of 2016. The identical firm's capital intensity ratio (A0*/S0) is (a)(higher than, lower than, or equal to) than Broussard's; therefore, the identical firm is (b)(less, more, the same) capital intensive - it would require (c)(a smaller, a larger, or the same) increase in total assets to support the increase in sales.

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Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2016 to $9.66...

Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2016 to $9.66 million in 2017. Its assets totaled $3 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.

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Please answer the following problems: 1. SunLife insurance has been trying to penetrate the mass market...

Please answer the following problems:

1. SunLife insurance has been trying to penetrate the mass market and educate them on the benefits and importance of life aand other investment insurance. They have used several TV personalities like Charo Santos and Piolo Pascual to penetrarte the segment, with limited success. People are aware of the brand, but are still not taking insurance due to various issues like affordability and distribution. Use the Ansoff Matrix and recommend how they can expand their market with an incremental 5 million heads by penetrating a new customer segment.

2. The milk tea craze is back for the third time around. Even fastfood chains and coffee shops offer milk tea. Taiwan has always been associated with milk tea, so you realized you have a great idea: to launch the Filipino milk tea. Using segmentation strategies, what segment of the market can you go after using that idea, and what will be your marketing mix?

3. WWF has been advocating sustainable development, from protection of wildlife to conservation efforts of our natural resources. While corporate support has been high, individual donors have plunged. People are not aware of where to donate , if at all, they will donate to an advocacy. Using the AIDA communication model, what can you propose to WWF to get 10,000 people to donate 1,000 pesos to the organization.

4. In today’s digital age, what is the fastest way to earn P100,000? Defend your product (or service). Identify your target market and positioning , and how you can mathematically earn (profit, not sales) P100,000. How and where will you market?

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Assume that a customer shops at a local grocery store spending an average of ​$400 a​...

Assume that a customer shops at a local grocery store spending an average of ​$400 a​ week, resulting in a retailer profit of ​$40 each week from this customer. Assuming the shopper visits the store all 52 weeks of the​ year, calculate the customer lifetime value if this shopper remains loyal over a​ 10-year life span. Also assume a 3 percent annual interest rate and no initial cost to acquire the customer. The customer yields ​$ nothing per year in profits for this retailer. ​(Round to the nearest​ dollar.)

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Why does not an increase in company pre-tax profits convert into an increase in giving as...

  1. Why does not an increase in company pre-tax profits convert into an increase in giving as a percentage of corporate pre-tax profits?

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Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and...

Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures:

Actual Forecast Additional Information
November $360,000 January $440,000 April forecast $420,000
December 380,000 February 480,000
March 430,000

Of the firm’s sales, 50 percent are for cash and the remaining 50 percent are on credit. Of credit sales, 50 percent are paid in the month after sale and 50 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased and received each month in an amount sufficient to cover the following month’s expected sales. Materials are paid for in the month after they are received. Labor expense is 45 percent of sales and is paid for in the month of sales. Selling and administrative expense is 10 percent of sales and is paid in the month of sales. Overhead expense is $22,000 in cash per month.

Depreciation expense is $10,800 per month. Taxes of $8,800 will be paid in January, and dividends of $6,000 will be paid in March. Cash at the beginning of January is $96,000, and the minimum desired cash balance is $91,000.

a. Prepare a schedule of monthly cash receipts for January, February, and March.
  


b. Prepare a schedule of monthly cash payments for January, February, and March.
  


c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March. (Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0.)

  

PLEASE HELP!

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Best Window & Door Corporation is considering the acquisition of Glassmakers Inc. Glassmakers has a capital...

Best Window & Door Corporation is considering the acquisition of Glassmakers Inc. Glassmakers has a capital structure consisting of $5 million (market value) of 11% bonds and $10 million (market value) of common stock. Glassmakers' pre-merger beta is 1.36. Best's beta is 1.02, and both it and Glassmakers face a 40% tax rate. Best's capital structure is 40% debt and 60% equity. The free cash flows from Glassmakers are estimated to be $3.0 million for each of the next 4 years and a horizon value of $10.0 million in Year 4. Tax savings are estimated to be $1 million for each of the next 4 years and a horizon value of $5 million in Year 4. New debt would be issued to finance the acquisition and retire the old debt, and this new debt would have an interest rate of 8%. Currently, the risk-free rate is 6.0% and the market risk premium is 4.0%.

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What is the difference between FDIC and SIPC?

What is the difference between FDIC and SIPC?

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Use the following information regarding your retirement planning: You plan to work (and save) for 35...

Use the following information regarding your retirement planning:

  • You plan to work (and save) for 35 years, then retire (and spend money from your retirement account) for 25 years. After these 60 years, you expect that your retirement saving account will have $50,000 left to give to your family.
  • You plan to save $4,000 in year 1, and you will increase this amount by 3% a year
  • You want your retirement spending to increase by 2% per year
  • You expect to earn a rate of return of 8% during your working years and 4.50% during retirement

To solve this problem, find the amount that you spend your first year of retirement.

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Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can...

Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.6 million. Klingon’s current balance sheet shows net fixed assets of $2 million, current liabilities of $700,000, and net working capital of $216,000. If all the current assets and current liabilities were liquidated today, the company would receive $1.03 million cash.

a. What is the book value of Klingon’s total assets today?

b. What is the sum of the market value of NWC and the market value of fixed assets?

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An investment is expected to produce the following annual year-end cash flows: year 1: $5,000 year...

An investment is expected to produce the following annual year-end cash flows: year 1: $5,000 year 4: $5,000 year 2: $1,000 year 5: $6,000 year 3: $0 year 6: $863.65 The investment will cost $13,000 today. I got that IRR is 10%

Prove your answer for IRR by showing how much of each year’s cash flow is recovery of the $13,000 investment and how much of the cash flow is return on investment. (Hint: See Exhibit 3–13 and Concept Box 3.2.)

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Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below. Balance...

Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below.

Balance Sheets:
2014 2013
Cash and equivalents $70   $55  
Accounts receivable 275   300  
Inventories 375   350  
      Total current assets $720   $705  
Net plant and equipment 2,000   1,490  
Total assets $2,720   $2,195  
Accounts payable $150   $85  
Accruals 75   50  
Notes payable 120   145  
      Total current liabilities $345   $280  
Long-term debt 450   290  
Common stock 1,225   1,225  
Retained earnings 700   400  
Total liabilities and equity $2,720   $2,195  



Income Statements:
2014 2013
Sales $2,000   $1,500  
Operating costs excluding depreciation 1,250   1,000  
EBITDA $750   $500  
Depreciation and amortization 100   75  
EBIT $650   $425  
Interest 62   45  
EBT $588   $380  
Taxes (40%) 235   152  
Net income $353   $228  
Dividends paid $53   $48  
Addition to retained earnings $300   $180  
Shares outstanding 100   100  
Price $25.00   $22.50  
WACC 10.00%     

What is the firm’s 2014 current ratio? Round your answer to two decimal places.

The 2014 current ratio indicates that Rosnan has sufficient/insufficient current assets to meet its current obligations as they come due.

What is the firm’s 2014 total assets turnover ratio? Round your answer to four decimal places.

Given the 2014 current and total assets turnover ratios calculated above, if Rosnan’s 2014 quick ratio is 1.0 then an analyst might conclude that Rosnan’s fixed assets are managed -Select-efficiently/inefficiently

What is the firm’s 2014 debt-to-capital ratio? Round your answer to two decimal places.
%

If the industry average debt-to-capital ratio is 30%, then Rosnan’s creditors have a -Select-smaller/bigger cushion than indicated by the industry average.

What is the firm’s 2014 profit margin? Round your answer to two decimal places.
%

If the industry average profit margin is 12%, then Rosnan’s lower than average debt-to-capital ratio might be one reason for its high profit margin.
-Select-True/FalseCorrect

What is the firm’s 2014 price/earnings ratio? Round your answer to two decimal places.

Using the DuPont equation, what is the firm’s 2014 ROE? Round your answer to two decimal places.
%

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The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss...

The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss Corp. is 100% equity financed, and it faces a 40% tax rate. They invested $100,000 in Net Fixed Assets, and $25,000 in additional working capital. what are the company's net income, its net cash flow, operating cash flow and cash flow from assets?

net income = $450,000; operating cash flow = $650,000; cash flow from assets = $525,000

1. How much was cash flow to shareholders?

2. How large was the dividend paid to shareholders?

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If you invest $22,267 today at an interest rate of 9.98 percent, compounded daily, how much...

If you invest $22,267 today at an interest rate of 9.98 percent, compounded daily, how much money will you have in your savings account in 21 years?

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How would a CFO decide if company should raise finance from Bond, OR Equity, OR Preferred...

How would a CFO decide if company should raise finance from Bond, OR Equity, OR Preferred Stock? Evaluate it by giving detailed features, merits and demerits of the each of them.

In: Finance