2. Sandwiches Inc. has net income of $2,250.00 andtotal equity of $12,900.00. The debt - equity ratio is0.75 and the payout ratio is 40 percent. What is theinternal growth rate?a) 6.36%b) 4.15%c) 11.69%d) 7.50%e) 11.07%

Option A is correctThe internal growth rate is 6.36%Explanation:Step 1: The calculation of the…

Answered: 2. Sandwiches Inc. has net income of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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AAC Inc. earned $3.00 per share. It paid S1.60 in dividends per share. Its return on equity is 126. Find its sustainable growth rate. A. 4.5% B. 5.6% C. 6.3% D. 7.2% E. 8.5%
Edwards Construction currently has debt outstanding with a market value of $75,000. The company has a WACC of 9 percent and has EBIT of $8,750 in the next year. The tax rate is 20%. What is the debt-to-value ratio if the EBIT’s growth rate is 5%? a. 42.86% b. 39.33% c. 96.42% d. 32.45%
7. Here is information from the most recent financial statements for your firm: The Income Statement reports a net income of $298, 000. The Balance Sheet show that Assets is $ 740, 000, Liabilities is $125, 000, and Equity is $ 615,000. Your company maintains a 35% retention ratio. If your firm wishes to maintain the same D/E ratio as last year, how much additional debt do you issue? 8. Here is information from the most recent financial statements for your firm: The Income Statement reports a net income of $298,000. The Balance Sheet show that Assets is $740, 000, Liabilities is $125,000, and Equity is $615,000. Your company maintains a 35% retention ratio. What is the firm's internal growth rate?
Domino’s Pizza, Inc. (DPZ)’s return on equity (ROE) is closest to A. 20.14%. B. 17.46%. C. 15.49%. D. 11.41%.
rofit margin = 9.2 % Capital intensity ratio = .53 Debt-equity ratio = .68 Net income = $ 103,000 Dividends = $ 52,000 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
2.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report. Return on Assets = 5% Debt Assets Ratio = 55% Profit Margin = 4.5% Inventory in days = 20 days Using these ratios, calculate the following for the Remal Company: a) Salesb) Total assetsc) Total asset turnover d) Total debte) Stockholders' equity f) Return on equityg) Inventory
Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.81 times at the end of 2018. If the firm's total debt at year-end was $9.00 million, how much equity does Trina's Trikes have? A. $16.29 million B. $1.81 million C. $9.00 million D. $4.97 million
Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.81 times at the end of 2018. If the firm's total debt at year-end was $9.00 million, how much equity does Trina's Trikes have? A. $16.29 million B. $1.81 million C. $9.00 million D. $4.97 million
Boots and Shoes inc has sales of $7525, total assets of $3215 and a debt equity ratio of 1.30. If its return on equity is 14 percent what is it's net income?
Profit margin = 9.1% Capital intensity ratio = .52 Debt-equity ratio = .67 Net income = $102,000 Dividends = $50,500 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (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 = 2.40; net profit margin (i.e., net income/sales) = 5%; payout ratio = 30%; equity/assets = 0.40. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate?
Question: Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity? a. 4.50 percent. b. 20.91 percent. c. 8.85 percent. d. 19.66 percent. e. 6.10 percent.

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2. Sandwiches Inc. has net income of $2,250.00 and total equity of $12,900.00. The debt - equity ratio is 0.75 and the payout ratio is 40 percent. What is the internal growth rate?a) 6.36%b) 4.15%c) 11.69%d ) 7.50%e) 11.07%