46. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Sales growth rate = g 30% Last year's total assets = A*0 $580 Last year's profit margin = M 5% Last year's accounts payable $40 Last year's notes payable $50 $500 Last year's accruals $30 Target payout ratio 60% a. $139.6 b. $130.9 c. $143.9 d. $120.9
46. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Sales growth rate = g 30% Last year's total assets = A*0 $580 Last year's profit margin = M 5% Last year's accounts payable $40 Last year's notes payable $50 $500 Last year's accruals $30 Target payout ratio 60% a. $139.6 b. $130.9 c. $143.9 d. $120.9
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 2P: AFN Equation Refer to Problem 9-1. What would be the additional funds needed if the companys...
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46. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to
Last year's sales = S0 $350
Sales growth rate = g 30%
Last year's total assets = A*0 $580
Last year's profit margin = M 5%
Last year's accounts payable $40
Last year's notes payable $50
$500 Last year's accruals $30
Target payout ratio 60%
a. $139.6
b. $130.9
c. $143.9
d. $120.9
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