Assume Crestwood Industries is 100% equity financed. Calculate the return on equity (ROE) using the following information: 1. Earnings before taxes = $2,200 2. Sales $7,500 3. Dividend payout ratio = 50% 4. Total assets turnover = 1.8 5. Applicable tax rate = 25%

Assume Crestwood Industries is 100% equity financed. Calculate the return on equity (ROE) using the following information: 1. Earnings before taxes = $2,200 2. Sales $7,500 3. Dividend payout ratio = 50% 4. Total assets turnover = 1.8 5. Applicable tax rate = 25%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 64P: Albion Inc. provided the following information for its most recent year of operations. The tax rate...

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Financial accounting.

Assume Crestwood Industries is 100% equity financed.
Calculate the return on equity (ROE) using the following
information:
1. Earnings before taxes = $2,200
2. Sales $7,500
3. Dividend payout ratio = 50%
4. Total assets turnover = 1.8
5. Applicable tax rate = 25%

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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. % %
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 $ 280,000 $ 17,700 $ 6,500 $ 60,000 $ 91,000 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. Answer is complete but not entirely correct. 24.14% $ 11,574.00 X 4.00 %