Question
I need help with this HOMEWORK Use the following information to determine a Financing Plan for UVX, Inc.: The company expects Net Income of $81
I need help with this HOMEWORK
Use the following information to determine a Financing
Plan for UVX, Inc.:
The company expects Net Income of $81 Million in the coming year
Expected Return on Sales (ROS) is 12% and the Marginal tax Rate is 28%
After any tax effects, they will pay net interest charges of $11 million during
the coming year
The company expects a Marginal Tax Rate of 28% in the coming year
Last year the firm paid $44 million in Dividends as has pledged to increase
Dividends by 5% in the coming year
The expected Capital Budget is $285 Million
The company's target Debt-to-Equity Ratio is 1.2
The firm has a current Cash balance of $60 Million and a target Cash balance
of 10% of Sales
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