Welcome

## You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. 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 40%, 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 year’s sales = S0 \$300.0 Last year’s accounts payable \$50.0 Sales growth rate = g 40% Last year’s notes payable \$15.0 Last year’s total assets = A0* \$500 Last year’s accruals \$20.0 Last year’s profit margin = PM 20.0% Initial payout ratio 10.0%   Select the correct answer.   a. \$26.7     b. \$20.7     c. \$23.7     d. \$22.2     e. \$25.2

You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. 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 40%, 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 year’s sales = S0 \$300.0 Last year’s accounts payable \$50.0 Sales growth rate = g 40% Last year’s notes payable \$15.0 Last year’s total assets = A0* \$500 Last year’s accruals \$20.0 Last year’s profit margin = PM 20.0% Initial payout ratio 10.0%

 a. \$26.7
 b. \$20.7
 c. \$23.7
 d. \$22.2
 e. \$25.2

Tired of numerous paper assignments?
Rely on us and receive professional paper writing assistance!

## Who We Are

We are a professional website for customized writing. If you searched a question and stumbled into our website, you are in the right place to receive assistance with your coursework.

## Do you handle any type of coursework?

Yes. We have displayed prior orders to demonstrate our experience. We can answer this question for you as we have previously. Please fill out our Order Form so that we may ensure its flawlessness. Correctly completing the order form will help our staff with reference, requirements, and future communication.

## Is it hard to Place an Order?

1. Click on the “Order Now” tab at the top menu or “GET A FREE QUOTE” icon at the bottom and a new page will appear with an order form to be filled
2. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process. Submit detailed paper instructions, upload necessary files if needed and provide your contact information – you are almost done!
3. Proceed with the payment- click on “PROCEED TO CHECKOUT” at the bottom of the page. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.