Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 $ 800 Sales Costs 150 Interest 30 Taxes 100 Net income $ 520 BALANCE SHEET, YEAR-END 2018 2019 $ 1,050 2,100 $ 3,150 2019 2018 Assets $ 2,850 $ 3,150 Debt $ 950 Equity 1,900 $ 2,850 Total $ 2,850 $ 3,150 Total a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% 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.) Internal growth rate b. What is the sustainable growth rate? (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 $ 800 Sales Costs 150 Interest 30 Taxes 100 Net income $ 520 BALANCE SHEET, YEAR-END 2018 2019 $ 1,050 2,100 $ 3,150 2019 2018 Assets $ 2,850 $ 3,150 Debt $ 950 Equity 1,900 $ 2,850 Total $ 2,850 $ 3,150 Total a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% 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.) Internal growth rate b. What is the sustainable growth rate? (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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Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 150 Short-term investments $ 110 Accounts receivable $ 200 Inventories $ 250 Total current assets $ 710 Net fixed assets $ 500 Total assets $ 1,210 Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar. $
Krogen Grocer’s 2016 financial statements show net income of $1,680 million, sales of $153,466 million, and average total assets of $46,350 million.How much is Krogen Grocer’s return on sales for the year? Question 22 options: A) 1.09% B) 30.20% C) 3.62% D) 6.42%
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. Sales Balance Sheet: Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net fixed assets Total assets This year $1,000 $ 200 $ 90 $ 300 $300 $ 890 $ 450 $1,340 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
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 % %
Romblon Company reported the following sales: P500,000 (2018); P520,000 (2019) and P551,200 (2020). Using the average growth rate method, the forecasted sales for 2021 and 2022 are" "P562,400 and P573,600" "P576,800 and P602,400" "P578,760 and P607,698" "P595,296 and P654,826"
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $1,000 Balance Sheet: Assets Cash $150 Short-term investments $140 Accounts receivable $300 Inventories $300 Total current assets $890 Net fixed assets $600 Total assets $1,490 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 150 Short-term investments $ 130 Accounts receivable $ 300 Inventories $ 250 Total current assets $ 830 Net fixed assets $ 600 Total assets $ 1,430 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar. $
If projected sales growth is actually 6.50%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.)
PROBLEM 1- Financial Statement Analysis The following information is available concerning the PAPASA-KA Company's expected results in 2019 (in thousand pesos). Turn-overs are based on year end values REQUIRED: Find all the values of the unknown variables 1. Return on sales 2. Gross profit percentage 3. Receivables turnover 6% 40% 5 times 4. Inventory turnover 5. Current ratio 6. Ratio of total debts to assets 4 times 3 40% CONDENSED INCOME STATEMENT CONDENSED BALANCE SHEET Sales P900 Cash P30 Current Liabilities Cost of Sales Receivables Long term debts Equity Gross profit OpEx Inventory PPE 670 Net income Total Total
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?
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