6 FIN4801 MAY/JUNE 2019 Question 2 [25 marks] Question 2.1 (10 marks) Tuna Canneries Ltd is planning for 2019 and wants to estimate the funds they will require. The company has total assets of R200 million, total liabilities of R40 million, sales of R100 million with a net profit margin of 15% and a dividend pay-out ratio of 50%. The company expects sales of R120 million in the 2019 financial year. All assets and liabilities are considered spontaneous and increase in line with sales. Assets, however, are currently underutilised at only 90% of the total capacity and the excess capacity first needs to be exhausted before new assets are required. A special dividend totalling R3 million will also be paid out to shareholders during 2019. Estimate the company's need for funding for 2019. 6 FIN4801 MAY/JUNE 2019 Question 2 [25 marks] Question 2.1 (10 marks) Tuna Canneries Ltd is planning for 2019 and wants to estimate the funds they will require. The company has total assets of R200 million, total liabilities of R40 million, sales of R100 million with a net profit margin of 15% and a dividend pay-out ratio of 50%. The company expects sales of R120 million in the 2019 financial year. All assets and liabilities are considered spontaneous and increase in line with sales. Assets, however, are currently underutilised at only 90% of the total capacity and the excess capacity first needs to be exhausted before new assets are required. A special dividend totalling R3 million will also be paid out to shareholders during 2019. Estimate the company's need for funding for 2019