Given the following information, what is the desired profit margin? D/E = 2 current profit margin = 10% R = 0.6 capital intensity ratio = 2 desired sustainable growth rate = 15%
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Given the following information, what is the desired profit margin?
D/E = 2
current profit margin = 10%
R = 0.6
capital intensity ratio = 2
desired sustainable growth rate = 15%
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- g. Calculate Pi in each of the following instances: a. Div Yield % = 6%, Total Return % = 16%, Po = $10 b. Capital Gain% = 8%, Div Yield % = 5%, D1 = $3 c. Capital Gain % = 10%; Do = $2; growth = 4%; Po = $40Assume that the following ratios are constant. Total asset turnover 1.37, profit margin 6.9%, equity multiplier 1.7, payout ratio 57%. What is the sustainable growth rate?How would an increase in each of the following factors affect the AFN?1. Payout ratio2. Capital intensity ratio, A0*/S03. Profit margin4. Days sales outstanding, DSO5. Sales growth rateIs it possible for the AFN to be negative? If so, what would this indicate?If excess capacity exists, how would that affect the calculated AFN?
- Using ror method calculate which one is more profitable for the company marr is 10%?Assuming the following ratios are constant, what is the sustainable growth rate? PLEASE INCLUDE EXCEL FUNCTIONS. Thank you! Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover Profit margin Equity multiplier Payout ratio Plowback ratio 3.40 5.2% Complete the following analysis. Do not hard code values in your calculations. Return on equity 22.98% Sustainable growth rate 1.30 35%What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. a. 12.79% b. 8.00% c. 14.61% d. 8.62%
- If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? O a. net income will increase by 20% b. more information is need to answer this question C. net income will increase d. net income will increase by 10%Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two projects, A or B, is better in terms of internal rate of return?How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
- Calculate the sustainable growth rate given the following information: debt/equity ratio = 60%; profit margin = 5%; dividend payout ratio = 50%; capital intensity ratio = 1. Multiple Choice 4.17% 8.26% 7.26% 4.26% 6.26%Assuming costs vary with sales and a 20 percent increase in sales is projected, create the pro forma income statement. Create a pro forma Balance Sheet. All items will vary with sales. What is the plug variable in order for this to balance? Suppose no dividend is planned to be issued next year. What is the plug variable?Suppose that products A, B, Cnd D have price elasticity of demand coefficients of 0.67, 1.24, 2.01 and 0.2 respE ely. A 10% rise in price would result in increased total revenue with which products? A) A and B. OB) A and C. O C) A and D. O D) B and C. O E) B and D.
