we can project what future value of investment will be if we make assumptions about growth...

we can project what future value of investment will be if we make assumptions about growth and contribution rates. Also, we need to make assumptions about inflation and taxes. Even with all those assumptions which may turn out to be inaccurate, why is this planning exercise still useful with clients?

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jeff jeffy answered 2 years ago

we can project what future value of investment will be if we make assumptions about growth...

we can project what future value of investment will be if we make assumptions about growth and contribution rates. Also, we need to make assumptions about inflation and taxes. Even with all those assumptions which may turn out to be inaccurate, why is this planning exercise still useful with clients?

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Based on the information given, what assumptions can you make about this company? Liquidity and Efficiency: Current Ratio: Current Assets/Current Liabilities 129,095/352,928 = 0.37:1 Total Asset Turnover: Net Sales/Average Total Assets 3,545,794/(1,902,637 + 1,833,301/2); 3,545,794/1,867,969 = 1.9 Inventory turnover: Cost of Goods Sold/Average Inventory 2,301,181/(338,590 + 330,223/2); 2,301,181/334,407 = 6.9 times Solvency: Debt Ratio: total liabilities/Total Assets 589,553/1,313,084 =0.45 Debt to Equity Ratio: total Liabilities/Stockholders Equity 589,553/1,313,084 = 0.45 Equity Ratio: Total Stockholders Equity/Total Assets 1,313,084/1902,637 = 0.69 Profitability: Profit...

What can you say about the value of stock with constant dividend growth where the growth...

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we can project what future value of investment will be if we make assumptions about growth...

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