Eckelberger Products, Inc., makes high-speed recorders with high- speed scanning. The small company has been growing at an average rate of 67% per year for the past 4 years. The CEO asks you to convert the past growth rate into a quarterly rate for its annual report. If the past growth rate is an effective rate, what is the effective growth rate per quarter? Solve by equation and spreadsheet function. The effective growth rate is % per quarter. The function used to determine the nominal annual rate is (Click to select).

Eckelberger Products, Inc., makes high-speed recorders with high- speed scanning. The small company has been growing at an average rate of 67% per year for the past 4 years. The CEO asks you to convert the past growth rate into a quarterly rate for its annual report. If the past growth rate is an effective rate, what is the effective growth rate per quarter? Solve by equation and spreadsheet function. The effective growth rate is % per quarter. The function used to determine the nominal annual rate is (Click to select).

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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Bio-Plasma Corporation is growing at 31% per year. It is all-equity-financed and has total assets of $2.7 million. Its return on equity is 22%. Its plowback ratio is 45%. What is the internal growth rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. What is the firm’s need for external financing this year? Note: Enter your answer in dollars not in millions. By how much would
Please don't give image based answer ..thanku
The newspaper reported last week that Bennington Enterprises earned $18.5 million this year. The report also stated that the firm's ROE is 17 percent. Bennington retains 85 percent of its earnings. a. What is the firm's earnings growth rate? (Round the answer to 2 decimal places.) Earnings growth rate % b. What will next year's earnings be? (Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) $ Next year's earnings
Plank’s Plants had net income of $10,000 on sales of $40,000 last year. The firm paid a dividend of $2,300. Total assets were $700,000, of which $350,000 was financed by debt. a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.) c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
It was reported last week that Blue Bell Enterprises earned $18.5 million this year. The report also stated that the firm’s return on equity is 11 percent. The firm retains 80 percent of its earnings. What will next year's earnings be? Round to the nearest whole dollar.
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Please explain each step and please show your work in excel and please explain each step and answer thoroughly. Miami Book Publishers (MBP) just reported earnings of $20 million, and it plans to retain 35 percent of its earnings. If MBP’s historical return on equity (ROE) was 15 percent, what is the expected growth rate for MBP’s earnings?
Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $400,000 and accounts payable (the only current liabilities account) were $125,000. Last year’s sales were $500,000. Esther’s expects to grow by 15 percent this year. Assets and accounts payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retained earnings are $98,000. Esther’s plans to sell $15,000 of new common stock this year. The firm’s profit margin on sales is 6 percent, and 40 percent of earnings will be paid out as dividends. How much new long-term debt financing will Esther’s need this year to finance its expected growth? Esther’s is currently operating at full capacity.
International Inc. is an outdoor furniture company that is planning to considerably grow over the coming years. Gaining very good reputation with its high-quality products , the company is projecting that it can grow at 10% over the coming 4 years and then the growth rate will decrease to 3% thereafter. Its earning per share (EPS) this year was $4 and the company,s dividend pay-out ratio was 30% that is its most recent dividends was $1.2. In order to finance this growth, the company needs to invest in new machinery and working capital. 1) If the company chooses to raise equity, what would be the expected price/share given the projected growth rates and given that the expected return on the company,s equity is 15% (assume the company uses the dividend discount model). 2) If the company instead decides to take an amortizing loan from its bank, the maximum loan value would be $10M which will be just enough to finance the necessary expansion. If the Annualized Percentage Rate (APR) that…

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