corporate finance
nSuppose a firm has following information:
nSales:$245,000; NI:$17,000; Dividend:$5,800; Total Debt: $53,000; Total Equity: $84,000.
nWhat is the sustainable growth rate?
nIf the company wants a 20% growth rate but still maintain its debt-to-equity rate? Is this possible without issuing new equity? How much new equity need to be issued?
Homework Answers
Request Answer!
10 have requested this problem solution
The more requests, the faster the answer.
Corporate Finance
nDuring the year, Bigquzi Co. had sales of 3,000,000; cost of goods sold, S&A and depreciation were 1,600,000,450000,540000 respectively. In addition the company had an interest expense of 250,000 and a tax rate of 35%. (Ignore any tax loss carryback or carryforward provisions)1)What is Bigquzi’ net income and operating cash flow2) The company paid out 400000, is this possible without issuing additional equity/debt? 3) If net capital spending and investment in net working capital is zero, and the firm issue no...
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...
Intro NiteLate Inc. had revenue of $164,000 last year, costs of $98,400 and depreciation of $24,600....
Intro NiteLate Inc. had revenue of $164,000 last year, costs of $98,400 and depreciation of $24,600. The company paid 6.1% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $16,400 in dividends, and wants to maintain the same dividend payout ratio in the future. At the beginning of the year, the company had a book value of debt of $48,000 and a book value of equity of $40,000. Over the course of the year, no...
Plank’s Plants had net income of $10,000 on sales of $100,000 last year. The firm paid...
Plank’s Plants had net income of $10,000 on sales of $100,000 last year. The firm paid a dividend of $400. Total assets were $600,000, of which $300,000 was financed by debt. a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.) c. What...
I attempted and the system said I was wrong. where am I messing up?. Plank's Plants...
I attempted and the system said I was wrong. where am
I messing up?.
Plank's Plants had net income of $5000 on sales of $90.000 last year The firm paid a dividend of $1.550. Total assets were $300.000 of which $150,000 was financed by debt a. What is the firm's sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Sustainable growth rate b. If the firm grows at its sustainable...
The sustainable growth rate a. is the highest growth rate attainable for a firm that pays...
The sustainable growth rate a. is the highest growth rate attainable for a firm that pays no dividends b. is the highest growth rate attainable for a firm without issuing new stock. c. can never be greater than the return on equity. d. can be increased by decreasing leverage.
Corporate Finance
Anjani Corp. shows the following information about the 2018 income statement: sales of $ 462,500; $ 245,000 cost; other costs $ 16,750; depreciation expense of $ 74,250; interest expense of $ 22,500; $ 47,950 in taxes; dividend of $ 23,750. In addition, you are told that the company issued $ 18,875 in new equity during 2018 and paid $ 17,750 of unpaid long-term debt.a. How was the 2018 operating cash flow?b. How was the 2018 cash flow for creditors?c. How...
A firm wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio...
A firm wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio of 26 percent and a profit margin of 5 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? ο ο 74 times ο ο ο
What is the Sustainable growth rate? Sig, Inc., wishes to maintain a growth rate of 12...
What is the Sustainable growth
rate?
Sig, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of 43. The profit margin is 5.9 percent, and the ratio of total assets to sales is constant at 1.80 What dividend payout ratio is necessary to achieve this growth rate under these constraints? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded...
Dahlia, Inc., wishes to maintain a growth rate of 15 percent per year and a debt–equity...
Dahlia, Inc., wishes to maintain a growth rate of 15 percent per year and a debt–equity ratio of .2. The profit margin is 7.1 percent, and the ratio of total assets to sales is constant at 1.68. What dividend payout ratio is necessary to achieve this growth rate under these constraints? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer as a percent rounded to the nearest whole number, e.g. 32.)...
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...
Intro NiteLate Inc. had revenue of $164,000 last year, costs of $98,400 and depreciation of $24,600. The company paid 6.1% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $16,400 in dividends, and wants to maintain the same dividend payout ratio in the future. At the beginning of the year, the company had a book value of debt of $48,000 and a book value of equity of $40,000. Over the course of the year, no...
I attempted and the system said I was wrong. where am
I messing up?.
Plank's Plants had net income of $5000 on sales of $90.000 last year The firm paid a dividend of $1.550. Total assets were $300.000 of which $150,000 was financed by debt a. What is the firm's sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Sustainable growth rate b. If the firm grows at its sustainable...
A firm wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio of 26 percent and a profit margin of 5 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? ο ο 74 times ο ο ο
What is the Sustainable growth
rate?
Sig, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of 43. The profit margin is 5.9 percent, and the ratio of total assets to sales is constant at 1.80 What dividend payout ratio is necessary to achieve this growth rate under these constraints? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded...
Most questions answered within 3 hours.
-
An aqueous solution of barium hydroxide is
standardized by titration with a 0.196 M solution
of...
asked 33 minutes ago -
accorsing to the data from thw college board, the mean wuantitive
Sat score for s demale...
asked 1 hour ago -
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 3 hours ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 3 hours ago -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 4 hours ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 5 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 7 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 8 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 11 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 11 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 11 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 11 hours ago