Fast Mawar Bhd is a company that manufactures box mowers, It had net income of $ 15 million on revenues of $ 50 million last year: Financial Management, Case Study, UTM, Malaysia

University Universiti Teknologi Malaysia (UTM)
Subject Financial Management

Question 3

Fast Mawar Bhd is a company that manufactures box mowers. It had net income of $ 15 million on revenues of $ 50 million last year, after depreciation charges of $ 10 million. Capital expenditures last year amounted to $ 16 million and total non-cash working capital was $ 10 million. The firm had a cash balance of $ 15 million and paid 50% of its earnings as dividends last year. There is no debt outstanding.

  1. Assuming that revenues, capital expenditures and depreciation grow 10% a year and that net income grows 12% a year for the next four years, and that the non-cash working capital as a percent of revenues does not change over this period, estimate the cash balance at the end of year 4, if the company maintains its current payout ratio and borrows no money.
  2. What proportion of earnings will Fast Mawar have to be pay out as dividends if the firm wants to to preserve its existing cash balance of $ 15 million at the end of 4 years?
  3. Assuming that Fast Mawar does not want to issue new shares and wants to maintain its existing payout ratio of 50% what debt ratio will the firm have to utilize over the next four years, to have a cash balance of $ 30 million at the end of the fourth year.

Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.

Get Help By Expert

Do you need help with your Financial Management case study in Malaysia? Listen, we're here to offer affordable assignment help services for your case study solutions. Our experienced assignment helpers ensure top grades and meet deadlines effectively. Need a Final Year Project helper in Malaysia? Don't worry! We provide comprehensive assignment writing services in Malaysia, including Online Exam Help, thesis writing, coding, programming, and more. Choose your service and hire experienced assignment writers to support your academic journey.

Answer

Recent Solved Questions

Online Exam & Assignment Writing Services

70841+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

BMS653 Bioremediation Technology UITM Assignment Answer In Malaysia
BMS653 Bioremediation Technology is an advanced course offered at Universiti Teknologi MARA (UITM) in Malaysia. This course focuses on the application of biotechnology in environmental restoration and pollution control. Through…
Science
IMS657 Legal and Ethical Aspects of Information Systems UITM Assignment Sample Malaysia
IMS657 Legal and Ethical Aspects of Information Systems is an incredibly challenging, but also incredibly important course. From security compliance to intellectual property, this class covers all the legal concerns…
Assignment Sample

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now