Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

The most recent financial statements for Tool Co. are shown here:

Statement Balance Sheet

Sales $46,000 Net working capital $ 21,000 Long-term debt $ 60,000
Costs 30,400 Fixed assets 100,000 Equity 61,000

Taxable income $15,600 Total $121,000 Total $121,000

Taxes (34%) 5,304

Net income $10,296

Assets and costs are proportional to sales. Tool Co. maintains a constant 30 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941846

Have any Question? 


Related Questions in Basic Finance

You must show your work for all of the problems1 you have

You must show your work for all of the problems. 1. You have accumulated $508,894 for your retirement. How much money can you withdraw for the next 25 years in equal annual end-of-the-year cash flows if you invest the mo ...

Gill bates is the ceo of a large company his compensation

Gill Bates is the CEO of a large company. His compensation is based on current profitability. He's considering undertaking one of two investments available to the company: (a) one that yields profits of $500 million in e ...

What would happen to interest rates on municipal securities

What would happen to interest rates on municipal securities, given each of the following scenarios? a. The government increases marginal tax rates. b. The tax exemption on municipals is eliminated. c. Corporate profits f ...

What is the difference in arranging pumps in series and in

What is the difference in arranging pumps in series and in parallel?

Why is the demand curve for wheat downward sloping why is

Why is the demand curve for wheat downward sloping? Why is the aggregate demand curve downward sloping? Explain why the reasons are different.

Consider the ar3 modeland suppose that the observed data

Consider the AR(3) model and suppose that the observed data are where {e t } and {a t } are independent and the initial values of x j  with j ≤ 0 are independent of et and at for t > 0. (a) Convert the model into a state ...

Describe the theory of the exchange-rate channel of the

Describe the theory of the exchange-rate channel of the monetary transmission mechanism. How, through the exchange rate, does an interest rate increase influence output? Why is this link difficult to find in practice?

The wall street journal reports that the rate on 8-year

The Wall Street Journal reports that the rate on 8-year Treasury securities is 1.20 percent and the rate on 9-year Treasury securities is 1.75 percent. According to the unbiased expectations theories, what does the marke ...

Edward c johnson iii was the ceo of fidelity mutual funds

Edward C. Johnson, III, was the CEO of Fidelity mutual funds and also the chair of the Fidelity board. In 2004, the SEC issued a regulation requiring chairs at mutual funds to be independent of management, forcing Johnso ...

Mutual fund assignmentdue date september 15 2016pick a

Mutual Fund Assignment(Due date: September 15, 2016) Pick a Mutual Fund of your choice. Visit the web site and learn about your chosen fund whatever you want to learn. Write a report, a page or so, explaining the main fe ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate