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naomicervero
02.02.2021 •
Business
A firm has total assets of $162,000, long-term debt of $46,000, stockholders' equity of $95,000, and current liabilities of $21,000. The dividend payout ratio is 60 percent and the profit margin is 8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $150,000 are projected to increase by 10 percent
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Ответ:
$8,820
Explanation:
The percentage of sales formula for computing the funding requirement is stated thus:
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x retention ratio)
AFN=additional funds=unknown
A-current level of total assets=$162,000
S- current sales $150,000
=Δ Sales=Change in sales=increase in sales=$150,000*10%=$15000
L-spontaneous liabilities=current liabilities=$21,000
PM-profit margin =8%
retention ratio=1-dividend payout ratio=1-60%=40%
FS-forecast sales =$150,000+$15000=$165,000
AFN =($162,000/$150,000)*$15000))-($21,000/$150,000)*$15000-(8%*$165,000*40%)
AFN =$16,200-$2,100-$5280
AFN=$8,820
Ответ:
The Correct Answer is B.
Explanation:
The meaning of Injecting money in the economy is circulating more money in the economy. It means more money supply in the economy. Therefore, when Banks approves a mortgage for a customer it means more money supply in the Economy because a bank is supplying money to its customers in the form of loans and this circulation of money becomes the part of the economy.
A Mortgage is a loan that is provided by a bank lends to a person on an agreed-upon interest rate and which lender has to return to the bank in a particular time otherwise bank will sell its property to get its money back.