INTERMEDIATE FINANCIAL MANAGEMENT 14TH
EDITION BY EUGENE BRIGHAM FINAL PAPER
FULL SOLUTION STUDY GUIDE
◉ Original long-term debt =.
Answer: Total assets - Accounts Payable - Common Stock - Retained
Earnings
◉ Original Total Liabilities =.
Answer: Long-term Debt + Accounts Payable
◉ Required % increase in Assets =.
Answer: Total Assets / Sales
◉ % increase in Spontaneous Liabilities =.
Answer: (Accounts Payable + Accrued Liabilities) / Sales
◉ New Sales =.
Answer: Original Sales * (1 + Growth Rate)
◉ Change in sales =.
, Answer: New sales - Original sales
◉ Required increase in assets =.
Answer: Change in Sales * Required % increase in assets
◉ Increase in Spontaneous Liabilities =.
Answer: Change in Sales * Profit Margin * (1- dividend distribution)
◉ What does AFN stand for?.
Answer: Additional Funds Needed
◉ New Debt Needed =
(Short).
Answer: AFN - New Stock
◉ AFN =.
Answer: Required increase in Assets - Increase in liabilities -
Increase in retained earnings
◉ New Debt Needed =
(Full).
EDITION BY EUGENE BRIGHAM FINAL PAPER
FULL SOLUTION STUDY GUIDE
◉ Original long-term debt =.
Answer: Total assets - Accounts Payable - Common Stock - Retained
Earnings
◉ Original Total Liabilities =.
Answer: Long-term Debt + Accounts Payable
◉ Required % increase in Assets =.
Answer: Total Assets / Sales
◉ % increase in Spontaneous Liabilities =.
Answer: (Accounts Payable + Accrued Liabilities) / Sales
◉ New Sales =.
Answer: Original Sales * (1 + Growth Rate)
◉ Change in sales =.
, Answer: New sales - Original sales
◉ Required increase in assets =.
Answer: Change in Sales * Required % increase in assets
◉ Increase in Spontaneous Liabilities =.
Answer: Change in Sales * Profit Margin * (1- dividend distribution)
◉ What does AFN stand for?.
Answer: Additional Funds Needed
◉ New Debt Needed =
(Short).
Answer: AFN - New Stock
◉ AFN =.
Answer: Required increase in Assets - Increase in liabilities -
Increase in retained earnings
◉ New Debt Needed =
(Full).
