Company ABC has asset turnover of 180% . Its equity multiplier and profit margin are 165% and 6%, respectively. Given a 40% constant dividend payout ratio, what is ABC’s sustainable growth rate?

Q: (Measuring growth) Given that a firm's retum on equity is 16 percent and management plans to retain…

A: Growth rate = retention ratio * Return on equity

Q: Premier Corporation has an ROE of 15.6 percent and a payout ratio of 25 percent. What is its…

A: Sustainable Growth Rate (SGR) is the maximum growth rate that a company can sustain without…

Q: Firm B has a capital intensity ratio of 2,optimal debt equity ratio of 1.5, and dividend payout…

A:

Q: The Leap Corporation expects next year’s net income to be P15 million. The firm’s debt ratio is…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Luther Industries has a dividend yield of 4.5% and a cost of equity capital of 10%. Luther…

A: As per the constant dividend growth model cost of equity is the sum of the dividend yield and the…

Q: Boyd Crowder's Chowder, Inc. desires a sustainable growth rate of 25.4 percent while maintaining a…

A: As per DuPont analysis, the ROE can be found by multiplying the value of the equity multiplier along…

Q: (Measuring growth) Given that a firm's return on equity is 14 percent and management plans to retain…

A: The growth rate of a firm can be determined by multiplying its return on equity (ROE) by the…

Q: ​(Measuring growth)  If​ Pepperdine, Inc.'s return on equity is 22 percent and the management plans…

A: Solution:- Growth rate means the rate at which the firm grows in the future.

Q: IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 3.92% a year.…

A: Cost of equity by dividend growth model: Cost of equity = D1/P0 + g D1 is expected dividend P0 is…

Q: A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio…

A: Return on equity is a ratio which measures the return to company in terms of equity. It indicates…

Q: Suppose a firm has a EBIT of $450, Depreciation of $65, taxes of $50, change in NWC of $35, and net…

A: The value of the firm is the present value of all the future cash flows expected from the firm…

Q: Walmart wants to achieve a sustainable growth rate of 3.63% and it wants to keep a same dividend…

A: The sustainable growth rate refers to the measure of the company's financial stability as it…

Q: What is the debt ratio at the optimal capital structure of XYZ Inc.?

A: Capital structure which maximizes the share price is the optimal one. Let D1 = Expected dividend…

Q: A firm has $60 million in equity and $40 million of debt, it pays dividends of 20% of net income,…

A: Equity=$60 million Debt=$40 million Net Income=$20 million Dividend=20% Required: Sustainable Growth…

Q: K Restex has a debt-equity ratio of 0.56, an equity cost of capital of 13%, and a debt cost of…

A: The objective of the question is to calculate the expected future growth rate that is consistent…

Q: A firm wants a sustainable growth rate of 3.68 percent while maintaining a dividend payout ratio of…

A: The formula to calculate the sustainable growth rate is:368.The given value of dividend payout…

Q: (Measuring growth)  If​ Pepperdine, Inc.'s return on equity is 17 percent and the management plans…

A: The multiplication of the retention ratio with return on equity results in the company's growth…

Q: El Nino Sprinkler Systems has a 25% ROE based on beginning equity and a 45% payoutratio. At what…

A: The sustainable growth rate is calculated below:

Q: , what is the present value of its growth opportunities?

A: Earnings per share, E = $12Plowback Ratio, b = 60%Dividend Payout Ratio = 100 – Plowback Ratio = 100…

Q: What is the sustalnable growth rate for a firm with net income of $2.5 million, cash dividends of…

A: Sustainable Growth Rate = Retention Ratio * Return on equity Retention Ratio = Retention Amount /…

Q: A company has a required return of 12%, a profit margin of 4%, a D/E ratio of 0.5 and total asset…

A: To calculate the price and forward P/E ratio with a dividend payout ratio of 20%, you can use the…

Q: A firm wishes to maintain an sustainable growth rate of 12 percent and a dividend payout ratio of 50…

A: ROE provides investors with valuable insights into a company's profitability, management…

Q: Need help with this question

A: Understanding the Problem and Given Information We're tasked with finding the profit margin of a…

Q: what is the firm's internal growth rate (IGR) if ROA is 14.5%, ROE is 18.8%, the firm retains 65% of…

A: Internal growth rate can be calculated from return on assets and retention ratio.

Q: National Co. has a constant growth rate of 5%. The company pays out 70% of its earnings. National…

A: An optimal capital structure is an efficient and appropriate mix of debt and equity so that…

Q: The Green Giant has a 7 percent profit margin and a 61 percent dividend payout ratio. The total…

A: The term "sustainable rate of growth" refers to the rate at which a business can expand without…

Q: Link-In Ltd. is forecast to have n ROE of 12% in perpetuity and its dividend payout ratio (DPY) is…

A: Retention Ratio = 1 - Payout Ratio                                   = 1 - 0.25…

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: A firm wishes to maintain an sustainable growth rate of 9 percent and a dividend payout ratio of 64…

A: Debt-equity ratio evaluates how much debt and equity a company uses to finance its operations and…

Q: You forecast to have a ROE of 14%, and dividend payout ratio of 12%. Currently the company has a…

A: PEG ratio is the ratio of price by earning divided by growth of earning . formula: PEG=P/E…

Q: Give me the answer

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

Q: Question: Growth and Profit Margin - Dante Co. wishes to maintain a growth rate of 12 percent per…

A: Growth and Profit Margin for Dante Co. To find the required profit margin for Dante Co., we need to…

Q: A firms ROE is 30%, dividends are 3,000,000, net income is 25% of sales and sales is 27,000,000.…

A: Return on Equity= ROE = 30%Dividend = d = 3,000,000Net Income of Sales = 25%Sales = s = 27,000,000

Q: An all -equity firm reports a net profit margin of 12% on sales of $6 million. If the tax rate is…

A:

Q: If A7X Company has an ROA of 14 percent and a payout ratio of 16 percent, what is its internal…

A: An internal growth rate for a public company is calculated by first using the return on assets…

Q: Arts and crafts will pay a divided of $5 per share in 1 year. It sells at $50 a share, and firms in…

A: As per dividend discount model, Price of stock = Dividend at the end of year 1 /(expected return -…

Q: XYZ Corp. is anticipating a sustained growth rate of 15% per year. Is it possible for them to…

A: The dividend payout ratio indicates profits that are delivered to shareholders as dividends. The…

Q: The Two Sisters Corp. has a retum on assets of 9 percent, retum on equity 12 percent and a dividend…

A: Return on Assets = 9%Return on Equity = 12%Dividend Payout Ratio = 75% or 0.75We will calculate the…