ofitability of a company can be measured using 1. Payout ratio 2. Debt to equity 3....
ofitability of a company can be measured using
1. Payout ratio
2. Debt to equity
3. Free cash flow
4. all of the above
Homework Answers
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ofitability of a company can be measured using
1. Payout ratio
2. Debt to equity
3....
A firm plans to grow at an annual rate of at least 25%. Its return on equity is 39%. Suppose the firm has a debt-equity ratio of 1/4. What is the maximum dividend payout ratio it can maintain without...
A firm plans to grow at an annual rate of at least 25%. Its
return on equity is 39%. Suppose the firm has a debt-equity ratio
of 1/4. What is the maximum dividend payout ratio it can maintain
without resorting to any external financing? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
Maximum dividend payout ratio
Maximum dividend payout ratio
20. If net income is expected to be $18 million, the desired debt/equity ratio is 1/3,...
20. If net income is expected to be $18 million, the desired debt/equity ratio is 1/3, and the capital budget is $14 million for the year, what are the dividends paid if the residual dividend model is used? What is the dividend payout ratio, and what is the dividend per share assuming 10 million shares outstanding? (Show all work)
Problem #1 Free Cash Flow Model ABC Company has an equity beta of 1.72 and a...
Problem #1 Free Cash Flow Model ABC Company has an equity beta of 1.72 and a tax rate of 35%. What is the asset beta if the debt to equity ratio is 40%? Using the answer from above, calculate the discount rate if the risk free rate is 2.75% and the market risk premium is 6.15%? ABC Company had an EBIT last year of $15.6 million. Depreciation expense was $1.45 million. In other areas, ABC spent $1.75 million on capital...
Prokter and Gramble (PKGR) has historically maintained a debt-equity ratio of approximately 0.23. Its current stock...
Prokter and Gramble (PKGR) has historically maintained a debt-equity ratio of approximately 0.23. Its current stock price is S47 per share, with 2.6 billion shares outstanding. The firm enjoys very stable demand for its products, and c it has a low equity beta of 0.575 and can borrow at 4.0%. Just 20 basis points over the risk-free rate of 3.8%. The expected retum of the market is 10.4%, and PKGR's tax rate is 25%. a. This year, PKGR is expected...
(1) Because a firm that uses debt can be as profitable as a firm that does...
(1) Because a firm that uses debt can be as profitable as a firm that does not, some financial ratios are calculated with NOPAT (Net Operating Profit After Tax) rather than with net income. (2) Free Cash Flow to the Firm measures the cash available to equity investors, after all debt payments (including interest and principal), have been made. (3) For Company T during 2017, the change in accounts receivable was positive, the change in inventories was positive, and there...
1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin...
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
Which of the following statements is true of the debt to equity ratio? A. The higher the debt to equity ratio, the gre...
Which of the following statements is true of the debt to equity ratio? A. The higher the debt to equity ratio, the greater the company's financial risk. B. If the debt to equity ratio is less than 1, the company is financing more assets with debt than with equity. C. If the debt to equity ratio is greater than 1, the company is financing more assets with equity than with debt. D. The higher the debt to equity ratio, the...
Which one of the following depicts a correct relationship? O Equity multiplier 1- Debt-equity ratio O...
Which one of the following depicts a correct relationship? O Equity multiplier 1- Debt-equity ratio O ROE 1- ROA O Dividend payout ratio -1- Retention ratio O Total asset turnover 1+ Capital intensity ratio O ROA ROEx (1+Debt-equity ratio)
Trower Corp. has a debt–equity ratio of .90. The company is considering a new plant that...
Trower Corp. has a debt–equity ratio of .90. The company is considering a new plant that will cost $105 million to build. When the company issues new equity, it incurs a flotation cost of 7.5 percent. The flotation cost on new debt is 3 percent. What is the initial cost of the plant if the company raises all equity externally? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer...
please explain how to get current debt-to-equity ratio and Asset Beta using an excel formula, thank...
please explain how to get current debt-to-equity ratio and
Asset Beta using an excel formula, thank you I rate! :)
BIU ® Format Painter Clipboard - X Font Alignme 010 for 2 Risk-free Rate (1-year T-bill yield) 3 Market Premium 4 tax rate 5 Equity Beta (BE) 6 Current Debt (MV, USD in mil) 7 Current Equity (MV, USD in mil) 8 Total Assets 9 EBIT 10 11 Current debt-to-equity ratio 12 Asset Beta (BA) 2.42% 7.50% 35% 0.472 4,796...
A firm plans to grow at an annual rate of at least 25%. Its
return on equity is 39%. Suppose the firm has a debt-equity ratio
of 1/4. What is the maximum dividend payout ratio it can maintain
without resorting to any external financing? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
Maximum dividend payout ratio
Maximum dividend payout ratio
20. If net income is expected to be $18 million, the desired debt/equity ratio is 1/3, and the capital budget is $14 million for the year, what are the dividends paid if the residual dividend model is used? What is the dividend payout ratio, and what is the dividend per share assuming 10 million shares outstanding? (Show all work)
Prokter and Gramble (PKGR) has historically maintained a debt-equity ratio of approximately 0.23. Its current stock price is S47 per share, with 2.6 billion shares outstanding. The firm enjoys very stable demand for its products, and c it has a low equity beta of 0.575 and can borrow at 4.0%. Just 20 basis points over the risk-free rate of 3.8%. The expected retum of the market is 10.4%, and PKGR's tax rate is 25%. a. This year, PKGR is expected...
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
Which one of the following depicts a correct relationship? O Equity multiplier 1- Debt-equity ratio O ROE 1- ROA O Dividend payout ratio -1- Retention ratio O Total asset turnover 1+ Capital intensity ratio O ROA ROEx (1+Debt-equity ratio)
please explain how to get current debt-to-equity ratio and
Asset Beta using an excel formula, thank you I rate! :)
BIU ® Format Painter Clipboard - X Font Alignme 010 for 2 Risk-free Rate (1-year T-bill yield) 3 Market Premium 4 tax rate 5 Equity Beta (BE) 6 Current Debt (MV, USD in mil) 7 Current Equity (MV, USD in mil) 8 Total Assets 9 EBIT 10 11 Current debt-to-equity ratio 12 Asset Beta (BA) 2.42% 7.50% 35% 0.472 4,796...
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