ZuoTi.Pro
Question

Please adhere closely to the rounding instructions(in red). Thanks!

Question 4 Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 72,429 Assets 178,884 Debt 44,955 Costs 43,457 Equity 133,929 EBIT 28,972 11,009 Total 178,884 Total 178,884 38% Net Income 17,963

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Pro-forma Income Statement: Particulars Sales (72429#124%) Less: Costs (43457#12496) EBIT Taxes @38% Net Income Less: Dividends @14.35% Addition to Retained earnings Amount S 89,811.96 53,886.68 35,925.28 13,651.61 22,273.67 3,195.42 19,078.25Balance Sheet: Assets Assets (178884#12496) Amount S Liabilities and Shareholders Equity 221,816.16 Debt Amount S 44,955.00 Additional funds needed Equity (133929+19078.25) 153,007.25 221,816.16 197,962.25 Value of Equity is - S 153,007.25/. EFN Increased in Assets - Increased in Liabilities - Addition to Retained Earnings EFN-(17888424%)-(0)-19078.25 EFN = $ 23,853.91. Internal growth rate ((ROA Retention Rate) ((1-ROA) Retention Ratic) ROA-Net Income/Total Assets ROA- (22273.67/221816.16) 100 ROA= 10.04% Retention Ratio = 1-Payout = (1-0.1435)-85.65% Internal growth rate-((0.1004*0.8565)/((1-0. 1004)0.8565) Internal growth rate (0.0859926/0.7705074) Internal growth rate-11.15% Approx Sustainable growth rate- (ROE Retention Ratio)/(1-(ROE Retention Ratio)) ROE-Net Income/Equity )#100 ROE - (22273.67/153007.25) 100 ROE-14.56% Sustainable growth rate-0.1456*0.8565)/(1-(0.1455*0.8565) Sustainable growth rate 0.12470664/0.87567925 Sustainable growth rate-14.25% Approx.

0 0
Add a comment
Know the answer?
Add Answer to:
Please adhere closely to the rounding instructions(in red). Thanks! Question 4 Consider the following recent financials...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • D Question 4 8 pts Consider the following recent financials for XYZ Corporation: Income Statement Balance...

    D Question 4 8 pts Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales7 72,429 Assets 178,884 Debt 44,955 Costs 43,457 Equity 133,929 EBIT 28,972 Taxes@ 11,009 Total 178,884 Total 178,884 38% Net 17,963 Income Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2.577 was ichoc to. nintin a constant navout ratio. Next vear's sales are Assets and costs are proportional to sales. Debt and equity are not. A...

  • Question 4 Consider the following recent financials for XYZ Corporation Income Statement Balance Sheet Sales 72,429Assets...

    Question 4 Consider the following recent financials for XYZ Corporation Income Statement Balance Sheet Sales 72,429Assets 178,884 Debt 44,955 Costs 43,457 Equity 133,929 EBIT 28,972 Taxes @ 38% 11,009Total 178,884Total 178,884 Net Income 17,963 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2.577 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to grow by 24%. What is the pro-forma value for equity? (Round answer...

  • Please adhere closely to the rounding instructions(in red). Thanks! Question 5 2 pts Lion Inc., has...

    Please adhere closely to the rounding instructions(in red). Thanks! Question 5 2 pts Lion Inc., has sales of $2492, total assets of $800, and a debt-equity ratio of O.7. If its return on equity is 17%. What is Lion's Net Income? (Round final answer to 2 decimal places. Do not round intermediate calculations). Topic: Financial Ratios (DuPont Model)

  • Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 72,429Assets 178,884 Debt...

    Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 72,429Assets 178,884 Debt 44,955 Costs 43,457 Equity 133,929 EBIT 28,972 Taxes @ 38% 11,009 Total 178,884Total 178,884 Net income|17963 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2.57 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,577 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are...

  • Please, please, please adhere to the rounding instructions (written in red), or the answer will be...

    Please, please, please adhere to the rounding instructions (written in red), or the answer will be wrong. Thank you!! Question 4 8 pts Consider the following recent financials for XYZ Corporation: Income StatementBalance Sheet Sales 52,961Assets 172,178 Debt 48,642 Costs 31,777 Equity 123.536 EBIT 21,184 Taxes @ 38% 8,050 Total 172,178 Total 172,178 Net Income 13,134 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,109 was paid, and the company wishes to maintain...

  • Please adhere closely to the rounding instructions(in red). Thanks! Question 1 1.5 pts The 2013 balance...

    Please adhere closely to the rounding instructions(in red). Thanks! Question 1 1.5 pts The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $1.8 million, and the 2014 balance sheet showed long-term debt of $3.6 million. The 2014 income statement showed an interest expense of $694,000 What was the firm's cash flow to creditors during 2014? (Round final answer to the nearest whole dollar. Do not round intermediate calculations) Topic: Cash Flow Identity

  • Please adhere closely to the rounding instructions(in red). Thanks! Question 3 2 pts The 2013 balance...

    Please adhere closely to the rounding instructions(in red). Thanks! Question 3 2 pts The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.4 million, and the 2014 balance sheet showed long-term debt of $2.7 million. The 2014 income statement showed an interest expense of $596,000. During 2014, Maria's Tennis Shop, Inc., had a cash flow to stockholders for the year of $306,000. Suppose you also know that the firm's net capital spending for 2014 was $822,000,...

  • Please adhere closely to the rounding instructions(in red). Thanks! Question 2 1.5 pts The 2013 balance...

    Please adhere closely to the rounding instructions(in red). Thanks! Question 2 1.5 pts The 2013 balance sheet of Maria's Tennis Shop, Inc., showed $612,000 in the common stock account while the 2014 balance sheet showed $730,000 If the company paid out $307,000 in cash dividends during 2014, what was the cash flow to stockholders for the year? (Round final answer to the nearest whole dollar Do not round intermediate calculations) Topic: Cash Flow ldentity

  • Please, please, please adhere to the rounding instructions (written in red), or the answer will be...

    Please, please, please adhere to the rounding instructions (written in red), or the answer will be wrong. Thank you!! Question 5 2 pts Lion Inc, has sales of $3156, total assets of $991, and a debt-equity ratio of 0.6. fits return on equity is 16%. What is Lion's Net Income? (Round final answer to 2 decimal places. Do not round intermediate calculations) Topic: Financial Ratios (DuPont Model)

  • Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087...

    Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087 Debt 38,278 Costs 44,281 Equity 170,809 EBIT 29,521 Taxes @ 38% 11,218 Total 209,087 Total 209,087 Net Income 18,303      Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,907 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to grow by 25%. What is the pro-forma value for equity?...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT