1) What is the internal growth rate? 2) What is the sustainable growth rate? % (Give as a percentage to 2 decimal places) % (Give as a percentage to 2 decimal places) 3) What is the sustainable growth rate if $13,000 of net profit was retained? percentage to 2 decimal places) % (Give as a
Q: KejoraJLand has total earnings last year of RM5,500,000 but expect total earnings to increase to…
A: A dividend is a payment made by a corporation to its shareholders out of its profits or earnings. As…
Q: O revenue section. O cost of goods sold section. O operating income section. O operating expense…
A: The manufacturing company are the company that manufacture the product and result they are the one…
Q: Claire wants to buy a new jacuzzi. The jacuzzi costs $$1550. Claire decides to finance the jacuzzi…
A: Financed amount refers to an amount taht is being borrowed by the borrower from the lender at some…
Q: You are ready for buying your new car. After the downpayment, you need to pay $490 a month for five…
A: Loans are financial arrangements where one party, typically a lender, provides a certain amount of…
Q: Total analysis charges last month for your firm were $2,393.20. During this same 30-day month, the…
A: The worth or value given to the academic credit that a student earns for successfully completing a…
Q: You want to invest $41,000 in a portfolio with a beta of no more than 1.6 and an expected return of…
A: It is a case when a portfolio is to be prepared that gives a 13% return and has a beta of not more…
Q: (Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work…
A: Rate of return = r = 7%Selma Payment Amount For First 10 years = sp = $1900Number of Selma Payment =…
Q: The returns on Stocks X and Y are as follows: Year Return on Stock X Return on Stock Y 2015 -4% 10%…
A: YearsReturn on Stock XReturn on Stock Y2015-4%10%201618%16%201732%19%Required:Covariance between the…
Q: Pls do fast ..i will like for sure Try to answer in typed form Consider the following natural…
A: Decision Tree making for the capital budgeting decisions helps to evaluate the cost and benefits…
Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…
A: The return on investment demonstrates the earning potential of the capital invested. The return…
Q: * A nces The expected return on Big Time Toys is 12% and its standard deviation is 21.6%. The…
A: 1. Expected Return of portfolio comprising of two securities is computed by following formula:-Rp =…
Q: Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more…
A: The value of a firm is estimated by taking the sum of the market value of all outstanding financial…
Q: Assume that an investment of $9000 earns an APR of 6% compounded monthly for 16 months. How much…
A: Data given:P=Principal=$9000r=APR=6% (compounded monthly)n=16 monthsRequired: Amount in the account…
Q: Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm…
A: a.> After cost of debt = 0.05386*(1-0.35)> After cost of debt = = 3.50 %> Expected change =…
Q: Given the following information, what would be the invoice price of the bond? A bond has standard…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: Oren Manis has a division that makes burlap bags for the citrus industry. The division has fixed…
A: Break-even sales refer to the level of sales at which a company's total revenue equals its total…
Q: O IT WITH EXCEL FORMULA A company is planning to start an investment, which will cost an initial…
A: IRR is a capital budgeting tool that helps to decide on whether the capital project should be…
Q: Problem 3 Suppose that risk-free zero interest rates with continuous compounding are as follows:…
A: Maturity (years)Rate (% per annum)12.0023.0033.7044.2055.50
Q: The recovery rate on defaulting debt is the lowest for the following type of debt? Senior…
A: The percentage of the face value of a defaulted debt that can be recovered in terms of principle and…
Q: In order to create an efficient set of portfolios thru optimization using concepts from Markowitz…
A: An optimal portfolio, in the context of investment and portfolio management, refers to a portfolio…
Q: On January 1st you invest P dollars into two different bank accounts. The first account compounds…
A: I be the initial investment in dollars.r be the term rate for the first account (compounding at the…
Q: Value of a mixed stream For the mixed stream of cash flows shown in the following table, determine…
A: The future value represents the expected value of the present series of cash flow amount.
Q: Estefan Industries has a new project available that requires an initial investment of $5.5 million.…
A: Net Present Value (NPV) is a financial metric used to determine the profitability of an investment…
Q: You are an audit assistant within the internal audit department of Crofty, a company that…
A: Good corporate governance is a set of principles and practices that guide the way a company is…
Q: Runners has decided to purchase products with a list price of $708.60 and a trade discount of 10%.…
A: Variables given in the question:List price =$708.60Trade discount=10%Required: Amount of discount…
Q: takes out a $6,000$6,000 personal loan to make home repairs. His interest rate is 12%12% on a…
A: Interest is amount paid to the borrower above the amount of loan being taken and that depends on…
Q: Jordan Delivery is a small company that transports business packages between New York and Chicago.…
A: NPV is also known as Net Present Value. It is a capital budgeting techniques which help in decision…
Q: Johnson Jets is considering two mutually exclusive projects. Project A has an up-front cost of…
A: Equivalent annual annuity is a capital budgeting techniques which help in decision making on the…
Q: Corporation X can issue straight 5-year debt (bonds) at a yield to maturity of 5%. If a 5-year at-…
A: Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it…
Q: 30. Redstar Air plans to issue a $1000 par value, 12-year, quarterly (i.e., 4 times per year)…
A: Bond price is the present value of cashflows from the bond. Cashflows from the bond includes coupon…
Q: Consider the following information: State of Economy Recession Normal Boom Probability of State of…
A: In the given case, we have provided the return and the probability of each stock.Expected return =…
Q: Your great-grandmother saved $100 to deposit into an account when each of her children was born,…
A: The internal rate of return (IRR) of an investment is the rate at which the present value of the…
Q: Adler Industries has $3,125,000,000 in total assets of which cash and equivalents total $75,000,000.…
A: Enterprise Value is the total value of the company. It can be described at the Total value of the…
Q: Suppose you short sell 1000 Intel shares at $20 per share and provide your broker with an initial…
A: The initial margin is the money that an investor must place in their accounts before the initiation…
Q: Karim is planning to buy a new storage unit, which needs him to take a loan of 150000$ over a period…
A: Variables in the question:Loan = $150000N=6 yearsn=6 years *12 =72For the first 3 years (i.e., 36…
Q: The saleemi corporations $1,000 bonds pay 11 percent interest annually and have 8 years until…
A: The company raises bonds for the purpose of issuing long term debts. The debt will include the fixed…
Q: Doak Corporation is evaluating a project with the following cash flows: Year 0 1 2 5 Cash Flow -$…
A: MIRR stands for Modified Internal Rate of Return. It is a financial metric used to evaluate the…
Q: Pennewell Publishing Inc. (PP) is a zero growth company. It currently has zero debt and its earnings…
A: Capital structure refers to the mixture of the components of debt and equity capital which is used…
Q: A pension fund manager is considering three mutual funds. corporate bond fund, and the third is a…
A: According to Bartleby guidelines, if question involves multiple sub parts , then 1st sub 3 parts…
Q: Chris would like to invest in gold and is aware that the returns on such an investment can be quite…
A: State of Economy…
Q: Suppose that the annual interest rate is 5.0 percent in the United States and 3.5 percent in…
A: The international trading marketplace where currencies are traded is known as the foreign exchange…
Q: KADS, Inc. has spent $400,000 on research to develop a new computer game. The firm is planning to…
A: The cash flow statement refers to the statement showing the summary of the cash and cash equivalent…
Q: Stone age keepsakes had $174,500 in sales last year, and spent $7,350 on advertising what percent…
A: The costs incurred to promote the businesses can be referred as advertising costs.
Q: iece of machinery is on a {A}-month lease at {B}% compounded annually. Beginning-of-month payments…
A: Monthly payments carry the payment for interest and payment of loans but these are fixed monthly…
Q: The S&P 500 is currently at 2888. The CBOE far-term VIX (^vif) is at 13.15, and the one-year LIBOR…
A: The Black-Scholes model assumes that financial markets are efficient and that the price of the…
Q: A firm paid interest of $40 this year. Last year, they had $500 in debt. This year, they had $300 in…
A: To calculate the cash flow to creditors, we need to subtract the net borrowing from the interest…
Q: Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You sold one contract…
A: There are 2 parties to a call option contract.One is the call buyer, and the other is the call…
Q: David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund…
A: The concept of TVM states that the money received earlier can earn interest which makes it more…
Q: Your discount brokerage firm charges $8.30 per stock trade. How much money do you need to buy 340…
A: Discount brokers, also known as online brokers or low-cost brokers, are financial institutions that…
Q: Michelle bought a new car for $34,000. She paid a 20% down payment and financed the remaining…
A: A loan refers to a contract between two parties where an amount is forwarded by one party to the…
f1
Step by step
Solved in 3 steps with 6 images
- You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = a. Sustainable growth rate b. Additional borrowing c. Growth rate = = = = $ 330,000 $ 18,700 $ 7,500 $ 70,000 $ 101,000 a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to: A. 14.04%. B. 14.82%. C. 24.71%. D. 26.68%.Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on notes and bonds 20,000 ID, rental revenue 15,000 ID, bank exp. 10,00O ID, dividends received 5,000 ID, So what * ?is the net profit before tax
- You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 %24 84,000 24 24,000 : Net income Dividends Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.., 32.16.) Sustainable growth rate ***** ** 23 %23 %23 %23 %23 %23 %231. The Wilson Corporation has the following relationships:Sales/Total assets 2.0Return on assets (ROA) 4.0%Return on equity (ROE) 6.0%What is Wilson’s profit margin and debt ratio?The Wilson Corporation has the following relationships: Sales/Total assets 2.0 Return on assets (ROA) 4.0% Return on equity (ROE) 6.0% What is Wilson's profit margin and debt ratio? (Ctrl) num k 8 # $ 9 7 8 3 4 5 6 5 6 Y E R 2.
- You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = = a. Sustainable growth rate b. Additional borrowing c. Growth rate $ 280,000 $ 17,700 $ 6,500 $ 60,000 $ 91,000 a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. 24.14% $ 11,574.00 X 4.00 %Please see below Company W's current financial ratios: Dividend payout ratio = 66% Internal growth rate 11% The ratio of total assets to sales = 1% The profit margin 8.6% If the management of Company W wants to maintain the above ratios at their current levels, what would be the debt-equity ratio? Multiple Choice 6.75 2.39 5.75 4.75 O 3.75You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 5.4% .63 7 Sustainable growth rate $ 56,000 $ 13,800 Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %
- Loreto Incorporated has the following financial ratios: asset turnover = 2.00; net profit margin (i.e., net income/sales) = 7%; payout ratio = 30%; equity/assets = 0.60. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Sustainable growth rate b. Internal growth rate 14 % %help me answer these pleaseeeeee 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the dividend yield. (use 2 decimal places for your final answer, express in percentage) 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. (separate the values by a comma followed by a space ", ") 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for…Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net income/sales) = 6%; payout ratio = 30%; equity/assets = 0.50. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) A. Sustainable growth rate _______% B. Internal growth rate ______%