Howton & Howton Worldwide (HHW) is planning its operations for t

Howton & Howton Worldwide (HHW) is planning its operations for t


Asked by 4 years ago
398.3k points

5. Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions.

Last years sales = S0 \$300.0 Last years accounts payable $50.0

Sales growth rate = g 40% Last years notes payable $15.0

Last years total assets = A0* \$500.0 Last years accruals $20.0

Last years profit margin = PM 20.0% Initial payout ratio 10.0%

a. $31.9

b. $33.6

c. $35.3

d. $37.0

e. $38.9

Howton &
maddy

2 Answers

Answered by 4 years ago
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 Howton & Howton Worldwide (HHW) is planning its operations for t

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Excerpt from file: 5. Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a

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Answered by 8 months ago
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 Howton & Howton Worldwide (HHW) is planning its operations for t

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Excerpt from file: Week2IndividualAssignment ACC/455 Bruce and Bob organize Black LLC on May 10 of the current year. What is the entitys default tax classification? Are any alternative classification(s) available? If so, (1) how do Bruce and Bob elect the alternative classification(s) and (2) what are the tax

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Asked: 4 years ago

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