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also solve this please and i will upvote: 2 . When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a
also solve this please and i will upvote:
When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Bohemian Manufacturing Company this year? Note: Do not round intermediate calculations.
$
$
$
$
In addition, Bohemian Manufacturing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firms profit margin and dividend payout ratio are expected to remain constant.
Given the preceding information, Bohemian Manufacturing Company is expected to generate $from operations that will be added to retained earnings. Note: Do not round intermediate calculations.
According to the AFN equation and projections for Bohemian Manufacturing Company, the firms AFN is $Note: Do not round intermediate calculations.
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