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


Universiti Teknologi Malaysia (UTM)

*We aren't endorsed by this school

Assignment Type

Individual Assignment


Financial Management Assignment

Uploaded by Malaysia Assignment Help



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.

Get Solved Your Assignment( variable) and Earn A+ Grade!

Get Help By Expert

Are you feeling overwhelmed by your Financial Management Case Study? No worries! Our assignment writing help service in Malaysia is here to support you. Malaysian students can count on our Final Year Project (FYP) Helper and expert Case Study helper online. Pay our professionals for personalized assistance and ensure academic success. We focus on delivering top-notch solutions to meet your coursework requirements effectively.



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
Convincing Features
Plagiarism Free Report
On-Time Delivery
Native Writers
A+ Quality
100% Confidential
24*7 Online Assistance

Get these features included in Your Assignment

Get Assistance for Assignments, online Exam, and Projects Writing