Ronaldo Inc. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60% debt and 40% equity. The company forcasts this year's net income to be $600,000. If the company follows a residual dividend policy, what will its dividend payout ratio?
1. Micromedia is having a 2 day seminar in Microsoft Excel. The project fee is $300 per student. The conference room, instructor, assistants and promotion cost $4800. Micromedia rents the computers for its seminars at a cost of $30 per computer per day. a. Develop a model for the total cost to put on the seminar. Let x
4-8 Times-Interest-Earned Ratio The H.R Pickett Corporation has $5000,000 of debt outstanding and it pays an interest rate of 10 percent annually; Pickett's annual sales are $2 million, its average tax rate is 30 percent, and its net profit margin on sales is 5 percent. If the company does not maintain a TIE ratio of at least
Answer all of the following questions. Explain your answer briefly and clearly, showing any necessary calculations. Your answer should be submitted in an Excel file. 1. The County Historical Society and Museum is considering holding a picnic as a fundraiser. They plan to charge $15 per ticket. They can rent a facility at
Please calculate the following ratios for Lloyd and Emporium for 2000, 2001, & 2002: (see attached) Current ratio Acid-test ratio Days' receivables (based on ending receivables and assuming 100% credit sales) Days' payables (based on ending payables to sales) Inventory turnover Total liabilities/total assets Long-term d
Use the annual information found that can be found by looking at attached file to answer this assignment. Calculate the following asset activity ratios for the end of 2005: Average Collection Period Inventory Turnover Total Asset Turnover Please show all work, including formulae and calculations used to arrive at financia
This posting answers such questions as: What financial information does the current ratio measure? How has the current ratio relate to the other liquidity ratios? Which financial ratios would you use - and how - to determine whether a company will be able to meet its commercial bank loan payments?
JetSet Travel, Inc. (JTI) expects to become very successful in the manufacture and sales of its new luggage line. This luggage will be sold at about $300 per set. JTI executive staff has asked you to provide them a powerpoint slide presentation which gives calculations for profit and break-even. Assume that JTI's annua
I need assistance in calculating ratios and answering questions for this assignment. Please see attachment.
Please answer the attached questions following the instructions. BE5-1 Compute missing amounts in determining net income. (SO 1) Presented below are the components in Clearwater Company's income statement. Determine the missing amounts. Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) $75,000
A. Determine the ratio of net income to net revenue or sales from Nathan's Famous consolidated income statement [attachment]. Do this for all years listed. Do you think the company is becoming more or less efficient? Explain. B. Find the retained earnings column or changes in retained earnings for the most recent year from Na
High School Traditions operates a shop that makes and sells class rings for local high schools. Operating statistics follow: Average selling price per ring $250 Variable costs per ring: Rings and stones $ 90 Sales commissions 18 Variable overhead 8 Annual fixed cost:
Target vs. WalMart summary comparing the companies two most recent fiscal years based upon based upon the following: Risk Management Select and calculate 3 financial ratios from Chapter 17 in Fundamentals of Corporate Finance, by Brealey for both fiscal years addressing the above topics. Finally, evaluate the annual and yea
Note sure how to "compute the change (negative or positive) in diluted earnings". Please look at problem and explain thank you in advance. Please look at excel for easier formatting reading. Only thing I got is the two formulas for Return on assets and Return on equity otherwise I'm pretty much stuck with the questions in the pr
The Audino Construction Company is considering 3 independent projects, each of which requires a $5 million investment. The estimated IRR and cost of capital for these projects are provided below: Project H (High Risk), CofC = 16%, IRR = 20% Project M (Medium Risk), CofC = 12%, IRR = 10% Project L (Low Risk),
Advise JTI 's executives on ways to control costs if a scenario evolves such as the previous #4 regarding variable cost increase for luggage production. Explain one or two strategies JTI could use to help assure profitable operations in light of increases in variable cost. Draw on your own experience, if relevant, giving an il
Comprehensive Financial Analysis Part I Paper Select a publicly traded organization. You may also visit the organization's website and review its annual and 10-K reports. Based on your findings, prepare a paper in which you evaluate the performance of your selected organization using financial ratios. Be sure to address the fo
How would combining two companies with differing profit ratios effect the new average profitability? Would this be favorable?
If tr=600q-120q(squared) and tc = 80+160q-10q(squared), where q= quantity, tr = total revenue, and tc = total cost, find the profit maximising quantity at which marginal revenue (mr) equals marginal cost (mc) A company estimates that its total cost function is given by tc=16000+60q and its total revenue function is tr=80q. Wh
Use the information contained in your selected organization's balance sheet and income statement to calculate the following ratios: 2) Profitability ratios a) Asset turnover b) Profit margin c) Return on assets d) Return on common stockholders' equity The organization balance sheet and in
Over the past year, M.D. Ryngaert & Co. has realized an increase in its current ratio and a drop in its total assets turnover ratio. However, the company's sales, quick ratio, and fixed assets turnover ratio have remained constant. What explains these changes?
Bowles Sporting, Inc. is prepared to report the following income statement (shown in thousands of dollars) for the year in 2006. Sales $15,200 Operating costs included depreciation 11,900 EBIT $ 3,300 Interest 300 EBT $ 3,000 Taxes (40 percent) $ 1,200 Net Income $ 1,800 Prior to
The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years: Year Year 2 Year 1 Net sales (in millions): Parker Enterprises, Inc. . . . . . . . . . . . . . . . . . . $ 3,700 $ 3,875 $ 3,882 Boulder, Inc . . . . . . . .
Regional Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Regional's base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown on page 219 is
Lenti Inc. expects EBIT of $2,000,000 for the current year. The firm's capital structure consists of 40 percent debt and 60 percent equity, and its marginal tax rate is 40 percent. The cost of equity is 14 percent, and the company pays a 10 percent rate on its $5,000,000 of long-term debt. One million shares of common stock are
A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation?
Grand Isle, Louisiana, is a popular resort, but it regularly faces a shortage of fresh water. Marie Bain has the entrepreneurial spirit and plans to open a business, shipping barges of fresh water to the town. She estimates the fixed cost to be $3,000,000, and the variable cost (water, labor, fuel) to be $50,000 per barge load.
Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed cos
Here are data on two stocks, both of which have discount rates of 15 percent: Stock A Stock B Return on equity 15% 10% Earnings per share $2.00 $1.50 Dividends per share $1.00 $1.00 a. What are the dividend payout ratios for each firm? b. What are the expected dividend growth rates for each firm? c. What is the proper sto
The typical current ratio is 2 to 1. What situations would cause it to be lower with no real risk to operations? Can it ever be under 1 to 1?