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- Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the financial leverage is 1.60. What is the sustainable rate of growth? O a. 9.13 percent O b. 9.89 percent O c. 10.85 percent O d. 9.54 percentNnana Ltd currently retains 60% of its earnings which are R6 a share this year. It earns an ROE of 30%. Assuming a required rate of return of 22%, how much would you pay for Nnana Ltd based on the earning multiplier model? a. b. C. R78.92 R79.88 R82.88 d. R70.80Sun Pharma Company earns Rs 10 per share, is capitalized at a rate of 12 per cent and has a rate of return on investment of 20 per cent. What should be the price per share at 70 per cent dividend pay-out ratio according to Walter and Gordon model respectively ? Is this the optimum pay-out ratio according to Walter Model ? Justify your answer showing relevant calculations. What are the similarities and dissimilarities between Walter and Gordon Model
- Calculate the ROE for a firm if it has a profit margin of 20%, an asset turnover of 2, and an equity multiplier of 1.4. For this calcualtion, if you multiply the numbers as they appear, you do NOT have to convert your final answer and cansimply type it in. So if you were multiplying 10%*1.5*5 = 75, you would simply enter 75 for 75% into BB.The Cornellus Company has an ROE of 14.8 percent and a payout ratio of 40 percent. What is the company's sustainable growth rate? (Do not round Intermedlate calculatlons an enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rateAssume the following ratios are constant: Profit margin Total asset turnover 2.5 5.2% Equity multiplier 1.3 Payout ratio 22% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Answer is complete but not entirely correct. Sustainable growth rate 1.09 %
- Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.5 6.5% 1.6 20% What is 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 %if the face value of both the shres is same then which investment out of following. is more profitable company A dividend 16% MV 80 company B dividend 20% MV 120If Gandhi & Co. has a 15% return on assets (ROA) and 25% is the pay-out ratio, what is its internal growth rate. а. 11.22% b. 12.68% с. 3.90% d. 10.12%
- 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 %23h. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth = 4%, Po = $50, P: = $60 b. Po = $32, Dividend yield % = 5%, P1 = $30 c. Dividend Yield = 4%; Capital Gain = %3D $20; DI = $4Choose the correct letter of answer: The following data applies to a firm: Interest Charges P10 Million, Sales/CGS P80 Million, Tax Rate 50% and Net profit margin 10%. What is the firm's interest covered ration? a. 1.6b. 2.6c. 3.6d. 4.6e. 5.6
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