Ramble On Co. wishes to maintain a growth rate of 10.4 percent per year, a debt-equity ratio of 1.0, and a dividend payout ratio of 15 percent. The ratio of total assets to sales is constant at .82. 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 % 8.26
Q: Samgee Company wishes to maintain a growth rate of 11. equity ratio of 1.6, and a dividend payout…
A: Profit margins are one of the most fundamental and commonly used financial figures in corporate…
Q: Omni Consumer Products just paid a dividend of 1.34 and anticipates a short term growth rate of 16%…
A: Using Dividend Discount Model
Q: The Leap Corporation expects next year’s net income to be P15 million. The firm’s debt ratio is…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: Riker Departmental Stores management has forecasted a growth rate of 40 percent for the next two…
A: Using dividend discount model,
Q: Nyeil, Inc., is a consumer products firm that is growing at a constant rate of 7.5 percent. The…
A: Market value of stock or share is the present value of the future cash flows. The rate rate of…
Q: Sandhill, Inc., is a consumer products firm that is growing at a constant rate of 4.0 percent. The…
A: As per Dividend discount model value of stock is = Year1 dividend /(required rate - growth) year 1…
Q: The Wei Corporation expects next year's net income to be $15 million. The firm is currently financed…
A: GIVEN, NET INCOME = $15 million debt ratio = 55% equity ratio = 1- 0.55 = 0.45 = 45% capital budget…
Q: Gbenda Corporation has sales of $91,200, net income of $18,240, dividends paid of $3,830, total…
A:
Q: Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior…
A: Earnings per share last year = 3.50 Growth Rate = 3% per year Future EPS Required = 3.50 × 3 = 10.50…
Q: A company’s estimated growth rate in dividends is 6%, its currentstock price is $40, and its…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: ou have looked at the current financial statements for J&R Homes, Co. The company has an EBIT of…
A: Financial Statement- Financial statements contain information on an entity's financial activity and…
Q: A firm wishes to maintain an internal growth rate of 12 percent and a dividend payout ratio of 64…
A: Debt-Equity ratio is a ratio which depicts the structure of the borrowings from the outside sources…
Q: Last year, K9 WebbWear, Inc. reported an ROE of 22 percent. The firm’s debt ratio was 50 percent,…
A: Total assets can be calculated as shown below.
Q: Value in Valuation, Inc. is assessing the value of two companies, Company A and Company B, which…
A: The question is related Valuation of business. First we will calculate the capitalised value of both…
Q: Johnson Products earned $4.20 per share last year and paid a dividend of $1.55 per share. If ROE was…
A:
Q: Arts and Crafts, Inc. will pay a dividend of $4 per share in 1 year. It sells at $50 a share, and…
A:
Q: Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior…
A: A=P(1+r/100)^nwhereA=future valueP=present valuer=rate of interestn=time period.
Q: You've collected the following information about Molino, Inc.: $205,000 Sales $ 14,200 $ 9,100…
A: Step 1: Calculate the retention ratio (b) as follows: Step 2: Calculate the return on equity (ROE)…
Q: Last year Lakesha’s Lounge Furniture Corporation had an ROE of 16.0 percent and a dividend payout…
A: Computation of sustainable growth rate:Hence, the value of sustainable growth rate is 13.02%.
Q: Jasmine Manufacturing wishes to maintain a sustainable growth rate of 9.25 percent a year, a…
A: First we need to calculate ROE by using sustainable growth rate formula Sustainable growth rate…
Q: You are given the following information about a firm: The growth rate equals 8 percent; return on…
A: Return on equity can be calculated by multiplying the return on assets by the equity multiplier. It…
Q: You are given the following information about a firm: Cost of equity is 10% Cash flow to…
A: The question is based on the concept of financial management.
Q: You've collected the following information about Molino, Inc. 190,000 Sales Net income $13,600…
A: a.To calculate the sustainable growth rate, first calculate the return on equity and retention ratio…
Q: The ABC Corporation expects next year’s net income to be Taka 20 million. The firm’s debt ratio is…
A: Equity is 60% Debt is 40% Capital budget is $15,000,000 Net income is $20,000,000 Compute the equity…
Q: Measuring growth) If Pepperdine, Inc.'s return on equity is 17 percent and the management plans to…
A: Return on equity is the measure that determines the financial performance of a corporation in…
Q: Tomeco Co. has a WACC of 12 percent. Its debt sells at a yield to maturity of 6 percent, and its tax…
A: Equity to total asset ratio is the financial tool to determine the value of asset that the…
Q: Redan, Inc., is expected to maintain a constant 5.4 percent growth rate in its dividends,…
A:
Q: Ramble On Co. wishes to maintain a growth rate of 10.4 percent per year, a debt-equity ratio of 1.0,…
A: Calculation of profit margin: Answer: The profit margin must the firm achieve should be 8.26%
Q: VWX Inc., has sales of $500,000, net income of $80,000, dividend payout of 50%, total assets of…
A: Sales are $500,000 Net income is $80,000. Dividend payout ratio is 50%. Total assets are $700,000…
Q: An analyst is trying to estimate the intrinsic value of Blue Co. that has a weighted average cost of…
A: Cost of Capital = 10% Free Cash Flows: Year Free cash flow 1 3000 2 4000 3 5000…
Q: A firm has sales of $1.2 million, a profit margin of 5%, and a dividend payout ratio of 30%. How…
A: Retained Earning= Profit * Retention Ratio Retention Ratio= 1-Dividend Payout Ratio Profit= Sales *…
Q: Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth…
A: Information in question: Sales last year = $ 1.6 millions Projected Sales this year =…
Q: 20
A: Formula to calculate the price is: P0 = Div/r - g Where P0 is the price, Div is the dividend, r is…
Q: (Measuring growth) Given that a firm's return on equity is 22 percent and management plans to retain…
A: Return on equity = 22% Retention ratio = 35%
Q: You’ve collected the following information about Odyssey, Inc.: Sales =$165,000 Net income = $14,800…
A: Given information: Sales is $165,000 Net income is $14,800 Dividends is $9,300 Total debt $68,000…
Q: Wazir Ali Corporation expects next year’s net income to be $15 million. The firm’s debt ratio is…
A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…
Q: Lamey Gardens has a dividend growth rate of 5.6 percent, a market price of $13.16 a share, and a…
A: Given: Growth rate = 5.6% Market price = $13.16 Required return = 14%
Q: Melanie Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the…
A: A model that helps to evaluate the value of the stock by discounting the dividend earned on the…
Q: YiYu Manufacturer wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of 0.45,…
A: Here, Growth Rate is 6% Debt Equity Ratio is 0.45 Dividend Payout Ratio is 30% Total Assets to Sales…
Q: Redan, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends,…
A: Required return of company = Growth rate of dividend + Dividend yield
Q: Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to án…
A: The stock price at the start of year 1 can be calculated as follows: Calculate the terminal value…
Q: Wanbay Corporation is interested in estimating its additional financing needed to support a growth…
A:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Q. 6 High Flyer, Inc., wishes to maintain a growth rate of 14% per year and a debt-equity ratio of 0.5. The profit margin is 4.6%, and total asset turnover is constant at 1.16. What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. DO NOT round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) What is the maximum sustainable growth rate for this company? (DO NOT round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16)Gamgee Company wishes to maintain a growth rate of 11.6 percent per year, a debt- equity ratio of 1.6, and a dividend payout ratio of 25 percent. The ratio of total assets to sales is constant at .88. 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 26.17 %Tinsley, Incorporated, wishes to maintain a growth rate of 13 percent per year and a debt-equity ratio of .3. The profit margin is 5 percent, and total asset turnover is constant at 1.2. a. What is the dividend payout ratio? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the maximum sustainable growth rate for this company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Dividend payout ratio b. Sustainable growth rate % %
- You are given the following information for Hendrix Guitars, Incorporated: Profit margin Total asset turnover Total debt ratio Payout ratio 6.3% 1.6 Sustainable growth rate .44 35% Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net income/sales) = 6%; payout ratio = 30%; equity/assets = 0.50. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) A. Sustainable growth rate _______% B. Internal growth rate ______%Loreto Incorporated has the following financial ratios: asset turnover = 2.00; net profit margin (i.e., net income/sales) = 7%; payout ratio = 30%; equity/assets = 0.60. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Sustainable growth rate b. Internal growth rate 14 % %
- Tinsley, Incorporated, wishes to maintain a growth rate of 17 percent per year and a debt-equity ratio of 1.1. The profit margin is 4.4 percent, and total asset turnover is constant at 1.04. What is the dividend payout ratio? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the maximum sustainable growth rate for this company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.You've collected the following information about Groot, Inc.: Profit margin Total asset turnover Total debt ratio Payout ratio = 4.44% = 3.50 = .25 = 29% a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROA % 15.54 %You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 %24 84,000 24 24,000 : Net income Dividends Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.., 32.16.) Sustainable growth rate ***** ** 23 %23 %23 %23 %23 %23 %23
- You've collected the following information about Hendrix Guitars, Incorporated: Profit margin Total asset turnover Total debt ratio Payout ratio 4.42% 3.30 .27 278 What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Sustainable growth rate %You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = a. Sustainable growth rate b. Additional borrowing c. Growth rate = = = = $ 330,000 $ 18,700 $ 7,500 $ 70,000 $ 101,000 a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %Jasmine Manufacturing wishes to maintain a sustainable growth rate of 9.75 percent a year, a debt-equity ratio of 48, and a dividend payout ratio of 28.5 percent. The ratio of total assets to sales is constant at 1.27. What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Profit margin % 4