What Is the Difference Between Vertical and Horizontal Alliances

question 170

Essay

What is the difference between vertical and horizontal alliances?

Calculate the pro forma net income based on projected sales increases.

Understand the relationship between dividend payout ratios and additions to retained earnings.

Determine the required increase in fixed assets due to projected sales increases.

Calculate the external financing needed (EFN) based on sales projections and financing conditions.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, essentially the equity value as shown on the balance sheet.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Dividend Per Share

A measure of the total dividends declared in a period divided by the number of outstanding ordinary shares.

Excess Cash

The amount of cash owned by a business that exceeds its immediate operational and investment needs, often signaling financial strength.