Problem 15-1
| Debt |
70% |
(Given Data) |
| Equity |
30% |
(Given Data) |
| Capital Budget |
$3,000,000 |
(Given Data) |
| Equity Retained |
|
(Use a formula) |
| Net Income |
$2,000,000 |
(Given Data) |
| Additions to Retained Earnings |
|
|
| Earnings Remaining |
|
(Use a formula) |
| Dividend Payout Ratio (ANSWER) |
|
(Use a formula) |
Find the Equity Retained
Evaluate Earnings Remaining
Calculate Dividend Payout Ratio
Problem 15-2
| Price of Stock = |
90 |
(Given Data) |
| Stock Split = 3/2 or |
1.5 |
(Given Data) |
| Stock Price after Stock Split = |
|
(Use a formula) |
Find Stock Price after Stock Split
Problem 15-4
| Dividend per share after split = |
$0.75 |
(Given Data) |
| 5/1 Stock Split |
5 |
(Given Data) |
| 9% increase over last years pre-split dividend |
1.09 |
(Given Data) |
Calculate Equivalent Pre-Split Dividend.
Evaluate Last year's Dividend.
Problem 16-1
| Sales |
15,000,000 |
(Given Data) |
| Inventory |
2,000,000 |
(Given Data) |
| Receivables |
3,000,000 |
(Given Data) |
| Payables |
1,000,000 |
(Given Data) |
| Cost of Goods Sold = 80% of Sales |
12000000 |
(Given Data) |
| Finance Rate |
8% |
(Given Data) |
| Days in a Year |
365 |
|
Calculate the following:
1. Inventory Conversion Period
2. Average Collection Period
3. Payables Deferral Period
4. Cash Conversion Cycle
Problem 16-2
Find Days Sales Outstanding
Problem 16-3
| Purchases |
$8,000,000 |
(Given Data) |
| Days in a Year |
365 |
(Given Data) |
Calculate the following:
1. Additional Credit if they forego discounts
2. Nominal Cost of Credit
3. Effective Cost of Credit
Problem 16-4a
| Inventory Conversion Period |
75 |
| Average Collection Period |
38 |
| Payables Deferral Period |
30 |
Evaluate Cash Conversion Cycle
Problem 16-4b
| Annual Sales |
$3,421,875 |
(Given Data) |
| Days in a Year |
365 |
(Given Data) |
(Hint: You will use data from Problem 16-4a)
Evaluate Investment in Receivables
Attachment:- Week Problem.xlsx