Homework Answers
a). Internal growth rate of a firm = Return of assets*(1-payout ratio)
ROA = Net income/total assets = 50300/407500 = 12.34%
So, Internal growth rate = 12.34*100 = 12.34%
b). Sustainable growth rate of a firm = Return ofequity*(1-payout ratio)
ROE = Net income/total equity = 50300/249400 = 20.17%
So, sustainable growth rate = 20.17*100 = 20.17%
c). when payout ratio = 42%
sustainable growth rate = 20.17*(1-.42) = 11.70%
Add Answer to:
Please answer A-C.
Homework: Chapter 18 Homework Save Score: 0 of 1 pt 9 of 11...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Begi...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Beginning Total Assets Beginning Stockholders Equity Payout Ratio a. Internal growth rate. b. Sustainable growth rate. c. Sustainable growth rate if it pays out 45% of its net income as a dividend The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issu...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the a...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the assumption that KMS's market share will increase by 0.23% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $21.5 million. Assume the following: the debt financing of the expansion will be delayed accordingly (end of 2018). KMS uses a ten-year bond, interest rates remain the same at 7.3%,...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of $501,700. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $297,700 and your beginning total liabilities are $119,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,900. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still...
For the next fiscal year, you forecast net income of $50,800 and ending assets of $503,500....
For the next fiscal year, you forecast net income of $50,800 and ending assets of $503,500. Your firm's payout ratio is 10.3%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $119,600. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,800. Assume your beginning debt is $105,100. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity...
1.) Your company has sales of $ 90, 700 this year and cost of goods sold...
1.) Your company has sales of $ 90, 700 this year and cost of goods sold of $ 63,500. You forecast sales to increase to $ 111,700 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
P 18-5 (similar to) Question Help Jim's Espresso expects sales to grow by 9.5% next year....
P 18-5 (similar to) Question Help Jim's Espresso expects sales to grow by 9.5% next year. Assume that Jim's pays out 80.3% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return...
Jim's Espresso expects sales to grow by 10.1 % next year. Assume that Jim's pays out...
Jim's Espresso expects sales to grow by 10.1 % next year. Assume that Jim's pays out 80.7 % of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices...
Using the information in the following table, calculate this company's $49,900 $395,900 $249,300 0% Net Income Beginning Total Assets Beginning Stockholders Equity Payout Ratio a. Internal growth rate. b. Sustainable growth rate. c. Sustainable growth rate if it pays out 45% of its net income as a dividend The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in...
Your firm has an ROE of 11 7%, a payout ratio of 26%. S629, 700 of stockholders' equity, and S430,000 of debt sustainable growth rate this year, how much additional debt will you need to issue? t you grow at your The Tax cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation...
Score: 0 of 1 pt 8 of 11 (10 complete) HW Score: 90.91%, 10 of 11 pts 18-14 (similar to) Question Help Under the assumption that KMS's market share will increase by 0.23% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $21.5 million. Assume the following: the debt financing of the expansion will be delayed accordingly (end of 2018). KMS uses a ten-year bond, interest rates remain the same at 7.3%,...
2. For the next fiscal year, you forecast net income of $51,700 and ending assets of $501,700. Your firm's payout ratio is 10.1%. Your beginning stockholders' equity is $297,700 and your beginning total liabilities are $119,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,900. What is your net new financing needed for next year? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still...
For the next fiscal year, you forecast net income of $50,800 and ending assets of $503,500. Your firm's payout ratio is 10.3%. Your beginning stockholders' equity is $296,700 and your beginning total liabilities are $119,600. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,800. Assume your beginning debt is $105,100. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
The table below gives the estimated free cash flow under the 0.25% growth scenario. Using these estimates and assuming a cost of capital of 10.1%, compute the value of KMS. 2013 2014 2015 2016 2017 2018 Year Free Cash Flow (000) Free Cash Flow of Firm Continuation Value $7,617 $5,749 - 515,646 $5,355 $6,500 $7,656 S222,308 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting...
P 18-5 (similar to) Question Help Jim's Espresso expects sales to grow by 9.5% next year. Assume that Jim's pays out 80.3% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 18 minutes ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 1 hour ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 3 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 4 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 5 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 7 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 6 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 7 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 7 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 7 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 7 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 7 hours ago