Homework Answers
Growth Rate = (1 - Dividend Payout Ratio)ROE
0.13 = (1 - 0.30)ROE
ROE = 18.57%
As per DuPont Formula,
ROE = (Profit Margin)(Asset Turnover)(Financial Leverage)
0.1857 = (Profit Margin)(1/0.95)(1 + 1.5) (as Asset/Equity = 1 + Debt/Equity)
Profit Margin = 7.06%
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< Question 12 (of 16) > 1 9 Save & Exit Submit 12. value: 7.69 points...
Question 11 (of 16) 1 9 Save & Exit Submit 11. value: 7.69 points Alter Bridge...
Question 11 (of 16) 1 9 Save & Exit Submit 11. value: 7.69 points Alter Bridge Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $560,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Maximum sales growth % References eBook & Resources Worksheet Difficulty: Intermediate Learning Objective: 04-01 How to apply the percentage...
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Show transcribed image text Chapter 9 Profit Maximization instructions help
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Question 11 (of 16) 1 9 Save & Exit Submit 11. value: 7.69 points Alter Bridge Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $560,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Maximum sales growth % References eBook & Resources Worksheet Difficulty: Intermediate Learning Objective: 04-01 How to apply the percentage...
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Ramble On Co. wishes to maintain a growth rate of 12 percent per year, a debt-equity ratio of.90, and a dividend payout ratio of 25 percent. The ratio of total assets to sales is constant at 85. What profit margin must the firm achieve? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin
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Question 2 (of 2) ? | Save & Exit | | Submit 2. value 9.00 points Merrill Corp. has the following information available about a potential capital investment: Initial investment Annual net income Expected life Salvage value Mermill's cost of capital $1,300,000 S 130,000 8 years S 140,000 10% Assume straight line depreciation method is used Required 1. Calculate the project's net present value. (Future Value of $1. Present Value of S1, Future Value Annulity of1, Present Value Annuilty of...
Chapter 9 Profit Maximization instructions help < Question 1 (of 7) Save & Exit Submit value: 0.28 points If the demand function for Noah and Naomi's garden benches is Q=D(P) Q=25/(P05), what is their inverse demand function? OP = 25*(Q). OP= 25/(Q*Q). O P = 5/(Q*Q). OP=625*(Q*Q). Op = 625/(Q*Q). eBook & Resources 9.1 PROFIT-MAXIMIZING QUANTITIES AND PRICES
Show transcribed image text Chapter 9 Profit Maximization instructions help
5. 2.00 points Problem 3-26 Constraints on Growth Shinedown, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of 6. Profit margin is 4.9 percent, and the ratio of total assets to sales is constant at 1.66. What dividend payout ratio is necessary to achieve this growth rate under these constraints ? (Do not be surprised of your answer is negative. A negative answer should be indicated by a minus sign. Do not...
HW 5 instructions help Question 12 (of 20) Save & Exit Submit 12. value: 10.00 points Green Meadows sells potted plants to gardening shops. On December 6, 2020, Green Meadows enters into a contract with Autumn Leaves to deliver 1,100 potted plants to Autumn Leaves at $15 per pot in three batches. Delivery date December 20, 2020 December 31, 2020 January 16, 2021 Units delivered 600 350 150 On December 20, 2020, Autumn Leaves modifies the scope of the contract...
? ? save & Exit )(Submit Question 4 (of 4) ? > value: 25.00 points An investment fund has the following assets in its portfolio: $38 million in fixed-income securities and $38 million in stocks at current market values. In the event of a liquidity crisis, it can sell its assets at a 94 percent discount if they are disposed of in five days. It will receive 96 percent if disposed of in seven days Two shareholders, A and B,...
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