FI515 homework 6 Paleh Roberts

FI515 homework 6 Paleh Roberts - PalehRoberts(Week6Homework...

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Managerial Finance FI515 Paleh Roberts ( Week 6 Homework) 12-1) AFN Equation Afn equation ( Ao*/So)ΔS-(L*/So)ΔS-MS1(1-d) A*= Total assets 3,000,000 So= Current sales 5,000,000 Δ change in sales 1,000,000 L*= spontaneous liabilities= accounts payable + accurals 500,000 M= profit margin 5% S1= next years sales 6,000,000 d= dividend payout ratio 7% AFN= (3,000,000/5,000,000)*1,000,000-(500,000/5,000,000)*1,000,000-5%*6,000,000(1-7%) 0.6 (3000000/5000000) 0.1 (500000/5000000) 300000 (5%*6,000,000) 0.3 (1-0.7) 600000 (0.6*1000000) 100000 (0.1*1000000) 90000 (0.3*3000000) AFN  410,000  13-2 Value of Operations of constant growth firm
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FI515 homework 6 Paleh Roberts - PalehRoberts(Week6Homework...

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