Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year,the company had total assets of $315,000. During the year, the company sold no newequity. Net income for the year was $34,000 and dividends were $4,400.a. Calculate the internal growth rate for the company. (Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)b. Calculate the internal growth rate using ROA × b for beginning of period total assets.(Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)Calculate the internal growth rate using ROA × b for end of period total assets. (Donot round intermediate calculations and enter your answer as a percent roundedto 2 decimal places, e.g.., 32.16.)c.

Equity=$160000Total assets=$315000Net income=$34000Dividends=$4400

Answered: Gilmore, Inc., had equity of $160,000…

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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[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements: EndingBalance BeginningBalance Cash $ 49,000 $ 44,200 Accounts receivable $ 92,000 $ 68,700 Inventory $ 76,300 $ 92,000 Current assets $ 217,300 $ 204,900 Total assets $ 801,000 $ 875,400 Current liabilities $ 85,500 $ 90,000 Total liabilities $ 206,000 $ 185,400 Common stock, $1 par value $ 165,000 $ 165,000 Total stockholders’ equity $ 595,000 $ 690,000 Total liabilities and stockholders’ equity $ 801,000 $ 875,400 This Year Sales (all on account) $ 1,095,000 Cost of goods sold $ 635,100 Gross margin $ 459,900 Net operating income $ 313,875 Interest expense $ 15,500 Net income $ 208,862 2. What is the…
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