Solution :- (1)
The Correct answer is (D) that is Internal growth rate
An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing.
Internal growth rate can be calculated by multiplying Retention Ratio with Return on Assets.
As per HomeworkLib policy we need to answer only one question at once so please ask others as seperate one.
If there is any doubt please ask in comments
Please Answer ALL Questions! 7. Which of the following is the maximum growth rate that a...
Which of the following will increase if the coupon rate for a bond increases? I. face value II. market value III. yield-to-maturity IV. current yield Is it A. I and IV only, B. II, III, and IV only, C.II only, D. II and IV only?
Which of the following are determinants of a firms sustainable rate of growth? I. Amount of sales generated from each dollar invested in assets II. Amount of debt per dollar of equity III. Amount of current assets per dollar of current liabilities IV. Percentage of net income distributed as dividends A. I and III only. B. II and IV only. C. I, II and IV only. D. II, III, and IV only E. I, II,III and IV
Which of the following affect current stock price? 1. Dividend growth rate II. Required return III. Current dividend IV. Expected dividend next year Select one: a. I and III only b. ll and IV only c. 1, 11, III and IV d. I, II, and IV only
Which of the following is TRUE? I. With perfect capital markets, a firm's WACC is independent of its capital structure and is equal to its equity cost of capital if the firm is unleveraged. II. Given a 35% corporate tax rate, for every £1 in new permanent debt that the firm issues, the value of the firm increases by £0.35. III. A key assumption of MM's Proposition I without taxes is that individuals can borrow on their own account at...
A firm that has an ROE of 7% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information which of the following statement(s) is/are correct? I. All else equal the firm's growth rate will accelerate after the payout change II. All else equal the firm's stock price will go up after the payout change III. All else equal the firm's P/E ratio will...
7 and 8 Question 7 (1 point) Accountants: [SELECT ALL THAT APPLY generally construct financial statements using the cash-based approach must apply Generally Accepted Accounting Principles to portray fairly how the firm will perform in the future. generally construct financial statements using the accrual-based approach must apply Generally Accepted Accounting Principles to portray fairly how the firm has 12 performed in the past Question 8 (1 point The DuPontidentity can be used to helo a financial manaser determine thes 17...
Please answer all of the following questions and please make sure your answers are correct! Thank you. In the terminal bouton of the motor neuron, which of the following can be found? I. synaptic vesicles II. Na+ voltage gated channels III. K+ voltage gated channels IV. Ca2+ voltage gated channels 17) A) II and IV only B) I, II, III, and IV C) I and III only D) I, IL, and III only E) IV only 18) A thin filament...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
If taxes rate decreases (for example, from 40% to 20%). Given the following four statements: I. The benefit of tax shield created by debt decreases. II. The cost of debt (financial distress and bankruptcy cost) increases. III. When taxes rate is 20%, the cost of equity will increase with leverage but at a slower rate compared to when tax rate is 40%. IV. For the same firm, the optimal capital structure will have a lower leverage ratio when tax rate...
Which of the following constitute advantage(s) of a revocable living trust? Please give detailed answer why each are wrong/right. I. Reduction in federal estate taxes II. Privacy surrounding one's financial affairs III. Removal of asset appreciation from the grantor's gross estate IV. Professional management of trust assets A. II only B. IV only C. II, and III only D. II and IV only E. I, II, and III