Question
Trumpington Inc. is a furniture producer which is planning to increase its market share. The company is planning to grow its sales at 30% next
Trumpington Inc. is a furniture producer which is planning to increase its market share. The company is planning to grow its sales at 30% next year. The company is currently operating at full capacity. The company has a dividend pay-out ratio of 45%, which the management want to maintain in order to meet the shareholders expectations. Given the below information, determine the value of the External money needed for next year.Single line text.
Amounts in 000's | sep-20 |
Sales | 18240 |
Costs, Tax income | 13440, 4800 |
taxes (34%) | 1632 |
net income | 3168 |
Amounts in 000's | sep 20 | ||
cash | 640 | acounts payable | 6400 |
accounts reciveables | 5120 | acrued expenese | 640 |
inventory | 6720 | current liabilities | 7040 |
current assests | 12480 | long term debt | 12000 |
fixed assets | 25920 | equity | 19360 |
total asstets | 38400 | total liab and equity | 38400 |
22,
Referring to question (1), if we assume that the company decided not to raise any external fund and depend solely on its own internally generated funds, what would be the maximum growth rate that it can achieve?Single line text.
33,
Referring to Question (1), What is the company's sustainable growth rate?Single line text.
NOTE: Only need answer for 2nd and 3rd.
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