Tim Gillespie Landis Part B

Tim Gillespie Landis Part B - B. Reduces Payout Ratio...

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Unformatted text preview: B. Reduces Payout Ratio Assets to Sales 85.00%Assets * Increase 85% x $15,000,000.00 = $12,750,000.00 Change in Sales $15,000,000.00 Liabilities * Increase 25% x $15,000,000.00 = $3,750,000.00 Liabilities to Sales 25.00%Profit Marg * New Sales Total 6% x $115,000,000.00 = $4,140,000.00 Profit Margin 6.00% Subtract all 3 New Sales Level $115,000,000.00 External Fund Requirement $4,860,000.00 Dividend Payout Ratio 40.00% Grows at Slower Rate Assets to Sales 85.00%Assets * Increase 85% x $10,000,000.00 = $8,500,000.00 Change in Sales $10,000,000.00 Liabilities * Increase 25% x $10,000,000.00 = $2,500,000.00 Liabilities to Sales 25.00%Profit Marg * New Sales Total 6% x $110,000,000.00 = $3,450,000.00 Profit Margin 6.00% Subtract all 3 New Sales Level $115,000,000.00 External Fund Requirement $2,550,000.00 Dividend Payout Ratio 50.00% Profit Margin Reduced Assets to Sales 85.00%Assets * Increase 85% x $15,000,000.00 = $12,750,000.00 Change in Sales $15,000,000.00 Liabilities * Increase 25% x $15,000,000.00 = 25% x $15,000,000....
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This note was uploaded on 02/25/2012 for the course FINANCE 410 taught by Professor Conway during the Spring '12 term at Regis University.

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