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Hi, I need help with my Managerial Finance assignment please. . . Frisch Fish Corp expects net income next year to be $600,000. Inventory and
Hi, I need help with my Managerial Finance assignment please. . .
Frisch Fish Corp expects net income next year to be $600,000. Inventory and accounts receivable will have to be increased by $306,000 to accommodate this sales level. Frisch will pay dividends of $396,000. How much external financing will Frisch Fish need assuming no organically generated increase in liabilities? $102,000 $82,000 $213,000 $122,000 Hicks Health Clubs, Inc., expects to generate an annual EBIT of S517,000 and needs to obtain financing for $1,070,000 of assets. Their tax bracket is 34%. If the firm goes with a short-term financing plan, their rate will be 7.0 percent, and with a long-term financing plan their rate wil be 8.0 percent. By how much will their earnings after tax change if they choose the more aggressive financing plan instead of the more conservative? (Amounts in parentheses indicate negative value.) $11.062 ($7,062) $7,062 ($11,062)
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