A Vegetable Company has the following results: Net sales sh6,000,000 Net total assets sh4,000,000 Depreciation sh160,000 Net income sh400,000 Long-term debt sh2,000,000 Equity sh1,160,000 Dividends sh160,000 Required: a. Compute the Company’s ROE directly. % b. Using the ROE computed in Part (a) above, what is the expected sustainable growth rate for the Company? % c. Assuming the firm’s net profit margin went to 0.04, what would happen to the Company’s ROE? %

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A: The sustainable growth rate (SGR) could be a key budgetary metric that measures the most extreme…

Q: > Assume the following Balance Sheet Accounts: Cash Accounts Receivable Inventory Fixed Assets Total…

A: Additional financing needed refers to the amount of money a business must raise in order to cover…

Q: Internal Growth Rate (IGR) Net Income ($) Total dividend paid ($) Retention ratio (%) Total assets…

A: Besides borrowing, the rate at which an organization can grow is known as the sustainable growth…

Q: Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000.…

A: Return on investment is calculated by dividing the Operating Income by the Average assets. Return on…

Q: Consider a retail firm with a net profit margin of 3.93 %​, a total asset turnover of 1.87, total…

A: The objective of the question is to calculate the Return on Equity (ROE) for a retail firm under…

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A: Answer:To find the profit margin, we need to use the relationship between the sustainable growth…

Q: alculate the sustainable growth rate

A: Answer:-  Sustainable growth rate = 14.05 % Explanation:-   Total asset turnover = 1 / Capital…

Q: Consider a retail firm with a net profit margin of 3.61 % a total asset turnover of 1.75​, total…

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A: Sustainable growth rate is the growth rate that can be obtained without any additional funding…

Q: Need Solution

A: To calculate the firm's Return on Assets (ROA), we need to use the following formula:Given:Profit…

Q: J has net income or les of $9: and average total assets of $4

A: margin = net income / sales*100   margin=  $81,700/$950,000*100 =8.6%

Q: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 9.6% .57 .72…

A: The Sustainable Growth Rate (SGR), also known as the Internal Growth Rate, is a financial metric…

Q: what is the firm?s ROA?

A: Return on Assets (ROA) is an important tool used by the business for determining the profitability…

Q: You are given the following information on Kayla's Heavy Equipment: Profit margin 5.4% Capital…

A: Solution:Sustainable growth rate means the constant rate at which the firm is growing.We know, g = b…

Q: The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs"…

A: The growth rate represents the rate at which a variable changes over a period of time.The growth…

Q: The Stieben Company has determined that the following will be true next year: T(ratio of total…

A: Part a: Calculation of sustainable growth rate in sales: Sustainable growth…

Q: Need help with this Question

A: Sustainable growth rate = ROE*b/[1-(ROE*b)].095 = ROE * .70/[1-(ROE*.70)].095 =ROE*.70 /[1…

Q: Provide correct solution of this question

A: Step 1: Given data :Retention Ratio (b): 33% or 0.33Sustainable Growth Rate (g): 8.80% or…

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A: Step 1: Question 1: Growth and Profit Margin - Dante Co. Given:Desired growth rate (g) = 12% or…

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A: Your take-home pay, sometimes referred to as net income, is the amount of money that remains in your…

Q: Provide answer for this question

A: Ans. ) Given the question, the task is to find the profit margin...Profit margin can be defined as…

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.