Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2019 Sales Costs Interest Taxes Net income Assets Total 2018 $3,000 $3,000 Internal growth rate $ 850 160 40 110 $ 540 BALANCE SHEET, YEAR-END 2019 $ 3,300 $3,300 Debt Equity Total 2016 $ 1,000 2,000 $3,000 2019 $ 1,100 2,200 $ 3,300 a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 70% and the equity-to-asset ratio is fixed at 2/3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2019 Sales Costs Interest Taxes Net income Assets Total 2018 $3,000 $3,000 Internal growth rate $ 850 160 40 110 $ 540 BALANCE SHEET, YEAR-END 2019 $ 3,300 $3,300 Debt Equity Total 2016 $ 1,000 2,000 $3,000 2019 $ 1,100 2,200 $ 3,300 a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 70% and the equity-to-asset ratio is fixed at 2/3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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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Here are comparative financial statement data for Vaughn Company and Mary Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities $ Long-term liabilities Common stock, $10 par Retained earnings (a) Vaughn Company Dollars 2022 $1,842,000 1,040,730 268,932 9,210 53,418 323,500 $314,800 520,500 501,500 64,000 109,000 497,500 173,500 $ 2021 74,800 Vaughn Company 91,000 497,500 153,000 Dollars I Condensed Income Statement Percent % 2022 % Mary Company $561,000 297,330 77.979 3,927 Prepare a vertical analysis of the 2022 income statement data for Vaughn Company and Mary Company. (Round percentages to 1 decimal place, e.g. 12.1%) 83,200 6,732 30,600 138,300 125,400 34,000 28,600 Vaughn Company 2021 4 $78,600 117,000 117,000 39,900 $ 24,200 Condensed Income Statement 34,200 Percent Dollars % % % % % % % % % $ Mary Company…
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You are assessing the performance of a retail company, Alpha. The income statement and balancesheet for Alpha at the end of 2019 and 2020 are presented below. income statement 2020 2019 revenue 750 720 cost of goods sold 400 450 depreciation 50 50 operating profit 300 220 interest expenses 30 25 profit before tax 270 195 tax expenses 90 70 net profit 180 125 balance sheet 2020 2019 assets non current asset 2,000 1,800 accumulate depreciation 500 450 total non current asset 1,500 1,350 current asset inventory 400 550 trade receivables 600 550 bank 200 250 total current asset 1,200 1,350 total asset 2,700 2,700 equity and liabilities equity contributed equity 1,000 1,000 accumulated retained earnings 500 450 total equity 1,500 1,450 liabilities non current liabilities long term loans 500 400 current liabilities trade payables 550 750 other payables 150 100 total current…
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What are the firm’s net profit margins for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 Sales Revenue $2,580 $2,865 Cash $70 $50 Less: Cost of goods sold $1,060 $1,500 Short-Term investments $35 $9 Less: Operating Expenses $105 $162 Accounts rec. 400 460 Less: Depreciation $85 $80 Inventory 490 556 Earnings before interest and taxes $1,330 $1,123 Total Current Assets $995 $1,075 Less: Interest paid $350 $380 Net fixed assets 1890 1,910 Taxable Income $980 $743 Less: Taxes (40%) $392 $297 Total assets $2,885 2,985 Net income $588 $446 Liabilities and Owner's Equity Dividends (45%) $265 $201 2018 2019 Additions to Retained Earnings $323 $245 Accounts payable $240 $210 Accruals $20 $20 Notes payable 65 74 Total Current…
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