Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve the attached questions Q-1 what would be Micro Drive's recent annual growth rates have averaged sales growth rate from 2006 to 2010 Year
please solve the attached questions
Q-1 what would be Micro Drive's recent annual growth rates have averaged sales growth rate from 2006 to 2010 Year Sales 2006 $2,058 2007 2534.00 2008 2472.00 2009 2850.00 2010 3000.00 Q-2 Assume that the sales growth is 10% and total Asset for year 2010 is $2000 and Accounts payable for the year is $ 60 and Accruals for payable is $ 140. The profit margin of the Micro Drive's is 3.78% whercas the company has policy to retain 48.92% while the rest is paid out to the shareholder. What would be Addition to equity (retained carnings) and what additional funds are required support sales growth (AFN-Additional Funds Needed). Q-3 If the sales of a company-A is $220 and its Fixed cost is 9.09% of its sales whereas the company B has same dollar sales but its fixed cost is 27.27% of sales. The price of product per unit for both company A and B is $2 and company A and B are expecting to produce 110 units. Variable cost per unit for company A is $1.5 whereas it is $1.0 for Company B (1) Calculate the breakeven Quantities for both companies. (2) What would be Net Operating Profits after Taxes NOPAT) given there is no debt and applicable tax rate is 40%. (3) What would be Return on equity if both companies have $200 of equity? Q-4 Assume that the company was operating at 75% capacity in 2010 if in 2011 it starts operating at full capacity what would be retained carnings in 2011 if the company has dividend payout policy of 60%. If the sales in 2010 was $36,000 and COGS is 85.51% of sales. Interest Payment would remain same for two years at $ 717 and tax rate is 40% what would be Addition to retained carnings if the company operates on 75% compare to full capacityStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started