Problem 4-33, Portfolio manager
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Determine the value of the management contract and reevaluate the contract value given a different yield on the stocks.
Determine the value of the management contract and reevaluate the contract value given a different yield on the stocks.
Given the financial statements and sales predictions for Wesney Corporation, create the pro forma statements, reconcile them, and determine the plug variable. Assume that every item on the balance sheet increases at the same rate as the sales increase.
Given the financial statements and sales predictions for Wesney Corporation, how can we prepare the pro forma statements and determine the external financing needed, assuming costs and assets vary with sales while debt and equity do not? Make pro forma statements, then find the external financing needed.
Given the financial statements and sales predictions for Camryn, Incorporated, and assuming that assets and costs are proportional to sales while debt and equity are not, what is the external financing needed for the next year? What is external financing required (EFN)?
Given the financial statements and sales predictions for Mixton, Incorporated, and assuming that assets and costs are proportional to sales while debt and equity are not, and given a desired constant payout ratio, what is the external financing needed for the next year? Find the external financing needed.
Given the financial statements and sales predictions for Assouad, Inc., and assuming that assets, costs, and current liabilities are proportional to sales while long-term debt and equity are not, and given a constant dividend payout ratio, what is the external financing needed for the next year? What is the external financing needed?
Given the financial statements for Mandy Company, assuming that assets and costs are proportional to sales while debt and equity are not, and given a constant dividend payout ratio, what is the internal growth rate? Find the internal growth rate.
What is the sustainable growth rate for Mandy Company based on its financial statements? Find the sustainable growth rate.
What is the maximum increase in sales that can be sustained by Tran Company assuming no new equity is issued, given its current financial statements, constant dividend payout ratio, and constant debt-equity ratio? What is the maximum increase in sales measured in dollars that can be sustained if no new equity is issued?
What are the pro forma income statement and the projected addition to retained earnings for the Heir Jordan Corporation, given its sales growth rate and assuming a constant dividend payout ratio and costs that vary with sales? Calculate the projected addition to retained earnings.