Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Chapter 7, Problem 26SP
a)
Summary Introduction
To determine: The
b)
Summary Introduction
To discuss: The value of operations at Year 3 and current value of operations and compare the value of operations at Year 0 with total net operating working capital at Year 3 and explain its relationship.
c)
Summary Introduction
To discuss: The new value of operations and whether it raises or declines and the reason for its change.
d)
Summary Introduction
To discuss: The new value of operations and whether it raises or declines and the reason for its change if the CRR reduced to 60%.
e)
Summary Introduction
To discuss: The new value of operations and whether it raises or declines and the reason for its change if the CRR reduced to 60%.
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Chachagogo, Inc. is planning its operations for next year, and 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?
Last year's sales P200,000
Sales growth rate 40%
Last year's current assets 65,000
Last year's noncurrent assets 70,000
Last year's profit margin 20.0% L
last year's accounts payable P50,000
Last year's notes payable P25,000
Last year's accruals P20,000
Target plowback ratio 75.0%
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Chapter 7 Solutions
Financial Management: Theory & Practice
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