answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bogdan [553]
2 years ago
5

Weston's financial planning model shows assets are projected to increase by $2.7 million while liabilities and equity increase b

y $1.5 million. What is the external financing need (EFN)?
Business
1 answer:
zhannawk [14.2K]2 years ago
8 0

Answer:

The external financing requirement is $ 1.2 million.

Explanation:

The accounting equation is asset = liability +equity. In simple words any increase in one side of balance sheet (i.e asset) will result in increase in other side of balance sheet (i.e equity + liability) and vice versa.

So if assets are projected to increase by $ 2.7 million than equity and liability is also required to increase by same. As equity is increased by $ 1.5 million, the liability/external financing is calculated as follow

Asset = Liability + Equity

Liability = $ 2,700,000- $ 1,500,000

Liability = $ 1.2 million

You might be interested in
Henry, a trainer at MyChem Inc., schedules training on handling hazardous chemicals for a group of newly hired employees. The tr
Sati [7]

Answer:

Hazard Communication Standard  (HCS) training program

Explanation:

The type of training described in this scenario is known as the  Hazard Communication Standard  (HCS) training program. This is a employee training program designed with the goal of explaining and reinforcing the written information regarding hazard labels and material safety data sheets, as well as how to behave around hazardous material and to apply this information to their workplace.

6 0
2 years ago
If Chester Corp. were to buy all of it's shares outstanding at its current price, how much would it cost Chester Corp, excluding
Anvisha [2.4K]

Answer:

$82, 727, 931

Explanation:

At a present stock price of $24.40 , the cost of buying all outstanding 3,390, 489 shares is calculated by multiplying the present stock price by the total outstanding shares 24.40 * 3, 390, 489 = 82, 727, 931

6 0
2 years ago
Xena and xavier form the xx llc. xena contributes cash of $20,000, land (basis = $40,000; fair market value = $25,000), equipmen
brilliants [131]

Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.

Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.

Xena's asset basis include;

Cash = $20,000

Land basis = $40,000

Inventory basis = $30,000

Equipment basis = $0

Therefore Xena's basis in the partnership interest :

$(20,000 + 40,000 + 30,000 + 0) = $90,000

4 0
2 years ago
The free cash flow to the firm is reported as $275 million. The interest expense to the firm is $60 million. If the tax rate is
alex41 [277]

Answer:

269 million

Explanation:

The free cash flow to the firm is 275 million

The interest expense is $60 million

The tax rate is 35%

The net debt of the firm increases by $33 million

Therefore the free cash flow to the equity holders of the firm can be calculated as follows

= 275 million-60 million(1-35/100) + 33 million

= 275 million- 60( 1-0.35) + 33 million

= 275 million- 60(0.65) +33 million

= 275 million - 39 million + 33 million

= 236 million + 33 million

= 269 million

7 0
2 years ago
Riley is considering the purchase of 350 shares of the preferred stock of Marston Manufacturing Company. The stock carries a par
Furkat [3]

Answer:

The per-share value of Marston’s preferred stock should be $92

Explanation:

The computation of the per-share value of Marston’s preferred stock is shown below:

= (Annual Dividend rate) ÷ (yields generation) × 100

= (5.75%) ÷ (6.25%) × 100

= $92

We simply divide the Annual Dividend rate by the yields generation or we can say it is a required rate of return.

All other information which is given in the question is not relevant. Hence, ignored it

7 0
2 years ago
Other questions:
  • Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Kinston stock and invest the proceeds from y
    7·1 answer
  • On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,
    10·1 answer
  • Psychographic segmentation is based on ________.
    11·1 answer
  • Mrs. Smith owns a piece of Florida real estate. Her school board millage rate is 4.5, City rate is 3.8 and County rate are 2.4 m
    10·2 answers
  • A domestic corporation considering international expansion for the first time typically will follow which of these paths?
    7·1 answer
  • A canned soup manufacturer has prepared questionnaires for its employees and customers. The questions are about how the people v
    7·1 answer
  • Whats the owners capital at the end of the year based on the statement?
    7·1 answer
  • Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from cus
    8·1 answer
  • Assume the November transactions for Camindo Co. are as follows:
    7·1 answer
  • When the decision maker prefers a guaranteed payoff value that is smaller than the expected value of the lottery, the decision m
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!