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.
-
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 3 minutes ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 14 minutes ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 46 minutes ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 1 hour ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 1 hour ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 2 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 3 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 3 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 3 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 3 hours ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 3 hours ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 3 hours ago