Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 13, 2023

The change in total capitalization of RAMCO Corporation is anticipated to be + 18000,000 and a positive change in total liabilities is 7000.000. The NSI

The change in total capitalization of RAMCO Corporation is anticipated to be + 18000,000 and a positive change in total liabilities is 7000.000. The NSI is projected to be 40% of retained earnings. it is planned to be 180% of the DPR.

What should be the target NI?

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

We can use the formula for calculating the target net income NI as follows Target NI Targ... blur-text-image

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

Recommended Textbook for

Finance for Executives Managing for Value Creation

Authors: Gabriel Hawawini, Claude Viallet

4th edition

9781133169949, 538751347, 978-0538751346

More Books

Students also viewed these Accounting questions

Question

★★★★★

Ma & Pa Incorporated manufactures toys for children and has partnerships with local retailers in the Midwestern states of Wisconsin, Iowa, Minnesota, and Illinois who sell their toys. The demand...

Answered: 1 week ago

Question

★★★★★

The Wall Street Journal lists forward rates for Japanese yen. Say that the current listings are: 1-month forward rate (indirect) 103.17 3-month forward rate (indirect) 102.68 6-month forward rate...

Answered: 1 week ago

Question

★★★★★

Based on the illustration of an iPhone shown below, draw a system model for an iPhone. iPhone Components Flash memory. CPU Main circuit boards Communications GSM cell, WiFi, EDGE Battery Display...

Answered: 1 week ago

Question

★★★★★

The Montauk Company has a dividend reinvestment plan in which shareholders owning 25% of its common stock participate. Last year the firms EPS was $4.20, and its payout ratio was 50%. There are 2...

Answered: 1 week ago

Question

★★★★★

If possible, solve the system. x + 2y + z = 3x + 2y = 2 = -x + 2y + 3z = 0 4 -4

Answered: 1 week ago

Question

★★★★★

Let X and Y be independent exponential random variables with respective rates and . Let M = min(X, Y ). Find (a) E[M X|M = X], (b) E[M X|M = Y ], (c) Cov(X, M).

Answered: 1 week ago

Question

★★★★★

Pip Squeaks Inc. is a manufacturer of furnishings for infants and children. The company uses a job order cost system. Pip Squeaks Work in Process Inventory on April 30, 2010, consisted of the...

Answered: 1 week ago

Question

★★★★★

Merle Industries had been selling its product for $42 per unit, but recently lowered the selling price to $26 per unit. The company's current inventory consists of 255 units purchased at $38 per...

Answered: 1 week ago

Question

★★★★★

A firm needs to fully satisfy the demand, which is fixed to 900 units and generates unit revenue of $10. However, its production is subject to the random yield. That is, only a random percentage of...

Answered: 1 week ago

Question

★★★★★

II. Your Client Bella Bames is thinking of giving annual gifts to her children. She has asked for your tax advice. Draft a one page memo covering the basics of Gift and estate tax.Include the...

Answered: 1 week ago

Question

★★★★★

For the following situation, identify the fallacy (or fallacies) associated with it. The Fallacies were 1) There are data mining tools that we can turn loose on our data repositories, and find...

Answered: 1 week ago

Question

★★★★★

Convert the following IPv6 address given in binary to its canonical text representation shown in step 1. 11010011 00000101 11111100 10101010 00000000 11000000 11100111 00111100 01010000 11000001...

Answered: 1 week ago

Question

★★★★★

Imagine your sister calls you and starts sharing the difficulty she is having at work with the team she is leading. Many members of her team are experiencing interpersonal conflict with each other...

Answered: 1 week ago

Question

★★★★★

Subject :- CREDIT & RISK MANAGEMENT Total Marks: 10 SEMESTER FALL 2021 CREDIT & RISK MANAGEMENT (FIN625) Assignment 2 - Due Date: February 22, 2022 Topic: COLLATERAL ABC bank is a well-established...

Answered: 1 week ago

Question

★★★★★

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues and gains: Sales Gain on...

Answered: 1 week ago

Question

★★★★★

Required: (a) Prepare journal entries to record the transactions. Narrations are required. (10 marks) (b) Set up T-accounts for Material Inventory, WIP, FOH Control and Finished Good, and post the...

Answered: 1 week ago

Question

★★★★★

Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...

Answered: 1 week ago

Question

★★★★★

You expect that your daughter will go to college ten years from now. Taking account of inflation, you estimate that you will need $160,000 to support her during her years in college. Assume an...

Answered: 1 week ago

Question

★★★★★

Cite two cases in which a bad decision (i.e., a decision that negatively affects the market value of a firm) would increase its return on equity.

Answered: 1 week ago

Question

★★★★★

Your brother-in-law offers you the opportunity to invest $15,000 in a project that he promises will return $17,000 at the end of the year. Because you have only $3,000 in cash, you will have to...

Answered: 1 week ago

Question

★★★★★

=+b. What operational definitions would you suggest that the researcher incorporate into this experiment?

Answered: 1 week ago

Question

★★★★★

=+b. Suppose it is known that, even for a fixed photoresist thickness, pit depths can vary substantially. Answer the question posed in part (a) for this situation.

Answered: 1 week ago

Question

★★★★★

=+seedlings. A square plot of land is subdivided into four equal-size square plots, each planted with the same amount, by weight, of seedlings. Before the fertilizers are applied, each square subplot...

Answered: 1 week ago

Previous Question Next Question