Question

In: Finance

Aldi is forecasting next year’s turnover at USD 70 million. The firm is planning to maintain a 47%

Aldi is forecasting next year’s turnover at USD 70 million. The firm is planning to maintain a 47% dividend pay-out ratio and is expecting a profit margin of 15%. Calculate the projected rise in retained earnings and explain the company’s three main options for raising new growth funding.

 

Solutions

Expert Solution

Given:

Aldi is forecasting next year’s turnover at USD 70 million. The firm is planning to maintain a 47% dividend pay-out ratio and is expecting a profit margin of 15%.

 

Therefore,

 

Kindly upvote my answer. Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! Thank you..!! 

Junaid answered 1 year ago
Next > < Previous

Related Solutions

Polished Marketing. is forecasting that next year’s sales of Happy-Time Vitamins will decline from $122 million...
Polished Marketing. is forecasting that next year’s sales of Happy-Time Vitamins will decline from $122 million to $106 million. Polished Marketing estimates that cash requirements will be 1% of sales, inventory will be 10% of sales, receivables will be 7% of sales, and payables will be 8% of sales. Depreciation is expected to be 8% of sales, and the tax rate is 35%. How will next year’s net working capital requirement be affected?
A United Kingdom firm is planning to hedge an import payment of USD 10 million dollars...
A United Kingdom firm is planning to hedge an import payment of USD 10 million dollars due in 9 months (i.e. the firm will expect to pay the US $10 million in 9 months-time). The spot rate is 1 UK = 1.25 USD. Note: UK = UK pounds. USD = US Dollars. The 9-month forward rate is 1 UK = 1.2575 USD. The nine-month interest rate for borrowing (and lending) in the United Kingdom (UK) is 1.00% p.a. and in...
The firm is planning to invest up to £65 million next year. The information about the...
The firm is planning to invest up to £65 million next year. The information about the available investment projects is given in the table below. Project Initial investment, millions of £ Internal rate of return Net present value, millions of £ Profitability index A 50 15% 12 B 35 19% 15 C 30 28% 42 D 25 26% 1 E 15 20% 10 F 10 37% 11 G 10 25% 13 H 1 18% 0.1 Assuming the projects are not...
The firm is planning to invest up to £65 million next year. The information about the...
The firm is planning to invest up to £65 million next year. The information about the available investment projects is given in the table below. Project The initial investment, millions of £ Internal rate of return Net present value, millions of £ Profitability index A 50 15% 12 B 35 19% 15 C 30 28% 42 D 25 26% 1 E 15 20% 10 F 10 37% 11 G 10 25% 13 H 1 18% 0.1 Assuming the projects are...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 2,300,000 Cost of goods sold 1,725,000 Gross profit 575,000 Selling & administrative expenses 304,000 Net income $ 271,000 Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $74,000. The president...
Top executive officers of Preston Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Preston Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 3,200,000 Cost of goods sold 2,240,000 Gross profit 960,000 Selling & admin. expenses 380,000 Net income $ 580,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $60,000. The president...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 2,300,000 Cost of goods sold 1,725,000 Gross profit 575,000 Selling & administrative expenses 304,000 Net income $ 271,000    Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $74,000. The...
Top executive officers of Tildon Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Tildon Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 1,600,000 Cost of goods sold 1,120,000 Gross profit 480,000 Selling & administrative expenses 190,000 Net income $ 290,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $30,000. The president...
Top executive officers of Tildon Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Tildon Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Sales revenue $ 1,600,000 Cost of goods sold 1,120,000 Gross profit 480,000 Selling & administrative expenses 190,000 Net income $ 290,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $30,000. The president has announced...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The...
Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 2,300,000 Cost of goods sold 1,725,000 Gross profit 575,000 Selling & administrative expenses 304,000 Net income $ 271,000    Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $74,000. The...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT