Operating at Full Capacity
Not what you're looking for?
Assume costs (except for depreciation and interest which remain constant), assets, and accounts payable maintain a constant ratio to sales.
a) If the firm is operating at full capacity, how much external financing is needed if sales are expected to increase by15% next year and the dividend payout ratio increases by 5%?
b) Using all of the same assumptions as above, how much external financing would be needed if fixed assets were only at 75% capacity in 2006.
c) Again referring to part (a) (full capacity), if the company wants to finance any EFN by using long-term debt and equity such that the current debt/equity ratio remains the same, what would the new amount of debt and equity be?
Purchase this Solution
Solution Summary
Excel spreadsheet to show the workings out of several accounting questions including external financing needed and debt and equity.
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.