Calculate the sustainable growth rate given the following information: Shareholders' equity $650,000; net income $80,000; dividends paid $18,000.
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Q: A firm projects net income to be RM500,000, intends to pay out RM125,000 in dividends, and had RM2…
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Q: Sales Costs Taxable income Taxes (21%) Net income $ 16,000 9,600 $6,400 1,344 $5,056 Current assets…
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A: Return on Equity= ROE = 30%Dividend = d = 3,000,000Net Income of Sales = 25%Sales = s = 27,000,000
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A:
![Calculate the sustainable growth rate given the
following information: Shareholders' equity
$650,000; net income $80,000; dividends paid
$18,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8edb1ae-a456-4939-9152-e7a523d58601%2F455b3bb8-9ff6-4868-abd7-613e61afe5bf%2Fxh7ust_processed.jpeg&w=3840&q=75)
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- Consider a company that has the following financial information for 2022: net income $492,000; dividend payout $223,000; current assets $492,000; fixed assets $8,028,000; common equity $4,460,000; retained earnings $984,000. What is the sustainable growth rate? What is the internal growth rate?Compute the return on equity using the following data: Total sales = Php3,000 million Total expenses = Php2,882.5 million Total assets = Php2,000 million Total liabilities = Php1,060 millionEstimate a firm's economic value added (EVA) based on the following information: NOPAT = $400,000; amount of financial capital used = $1,600,000; and WACC = 19%. $26,000 $36,000 $96,000 54,000
- What is the weighted average cost of capital for a corporation that finances an expansion project using 40% retained earnings and the rest as debt capital? Assume the interest rates are 13% for equity financing and 27% for debt financing. The rate of return per quarter is __ % The rate of return per year is __%The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2023. The tax rate will remain constant. Income Statement Sales Costs $ 4,550 2,050 Pretax income Taxes (at 30.0%) $ 2,500 750 Net income $ 1,750 Balance Sheet, Year-End 2022 Net assets $ 6,600 2021 $ 6,300 Total $ 6,600 $ 6,300 Debt Equity Total 2022 $ 2,800 3,800 2021 $ 2,700 3,600 $ 6,600 $ 6,300 a. Assume that the dividend payout ratio is fixed at 60% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate for 2023? b. What is the sustainable growth rate for 2023? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Internal growth rate b. Sustainable growth rate % %You've collected the following information about Caccamisse, Incorporated: Sales $ 155,000 $12,200 Net income Dividends $ 8,100 Total debt $ 62,000 Total equity $53,000 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. If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (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? (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. Additional borrowing c. Internal growth rate % %
- 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.)The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses. current assets, fixed assets, and accounts payable increase spontaneously with sales. CROSBY, INCORPORATED 2021 Income Statement Sales $750,000 Costs 585,000 Other expenses 21,000 Earnings before interest and taxes $144,000 Interest expense 17,000 Taxable income $127,000 Taxes (22%) 27.940 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 20,940 43.880 Accounts payable Notes payable $ 55,100 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and…A company's average total assets for the year are $4,000,000, its average total stockholders' equity for the year are $3,000,000, its net income is $900,000, its gross margin is $5,000,000, and its net sales are $12,000,000. What is its return on assets?
- 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?Based on the following information, calculate the sustainable growth rate for Kaleb's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.1% .51 .67 $ 29,000 $19,720
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