Maximum Growth Without Employing External Funds
Not what you're looking for?
ABC has the following ratios: A*/so=1.6, L*/so=0.4, profit margin=0.10 and dividend payout ratio=0.45. Sales last year were $100 million. Assuming the ratios remain constant, use the AFN model to determine the maximum growth rate the firm can achieve without having to employ external funds.
Purchase this Solution
Solution Summary
This solution determines whet the maximum growth rate for ABC can be without having to employ external funds.
Solution Preview
Use AFN formula Additional Funds Needed=(A/S0)(S1-S0) - (L/S0)(S1-S0) -MS1(1-d)
Where A/S0=1.6
S1=We need to ...
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
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.