If the sales of a company grows by 25 percent in a year, how much its gross profit will increase? Assume that company have a ROE = 15 %, degree of operating leverage = 3, and plowback ratio = 5 O 7.5% O 8.33% 28% O 75%
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- 11 If sales increase from P80,000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by: Group of answer choices 375% 167% 334% 250% 150% 875% 188%4.1 Calculating EFN Based on the following information for the Skandia Mining Company, what is EFN if sales are predicted to grow by 10 percent? Use the percentage of sales approach and assume the company is operating at full capacity. The payout ratio is constant. Income Statement Sales Costs Taxable income Taxes (34%) Net income Dividends Addition to retained earnings $4,250.0 3,875.0 $ 375.0 127.5 $ 247.5 $82.6 164.9 SKANDIA MINING COMPANY Financial Statements Assets Current assets Net fixed assets Total assets Balance Sheet $ 900.0 2,200.0 $3,100.0 Liabilities and Owners' Equity Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity 4.2 EFN and Capacity Use Based on the information in Problem 4.1, what is EFN, assuming 60 percent capacity usage for net fixed assets? Assuming 95 percent capacity? 4.3 Sustainable Growth Based on the information in Problem 4.1, what growth rate can Skandia maintain if no external financing is used? What is the…13 This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased by $12,000 compared to last year. The Degree of Operating Leverage (DOL) this year is 4.00. If the sales are expected to increase by 5% next year, how much profit does the company will make next year? A. $ 14,400 В. $ 18,000 С. $ 18,900 D. $ 21,600 Е. None of the above
- B The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth? Multiple Choice 16.32% 12.00% 2.40% 8.60% 12.90%Ch. 11 Profitabiity Index Please solve the following and explain in detail. Calderon Kitchen Supplies is planning to invest $210,000 in a product. The product is expected to generate a net present value of $56,700. The profitablity index is???If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.
- If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm’s sales =$5,700, net income is $520, total assets=8890, dividends=156, A/P =990, LTD= 3730, and common stock=2980, and retained earnings =1200. $146.00 $251.20 $379.60 $421.60 $550.30If Gandhi & Co. has a 15% return on assets (ROA) and 25% is the pay-out ratio, what is its internal growth rate. a. 11.22% b. 12.68% c. 3.90% d. 10.12%
- What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. a. 12.79% b. 8.00% c. 14.61% d. 8.62%Q.15 2PM Corporation recently reported sales of 100 million, and net income equal to 5 million. The company has 80 million in total assets. Over the next year, the company is forecasting a 20% increase in sales. Since the company is at full capacity, its assets must increase in proportion to sales. The company also estimates that if sales increase 20 percent, spontaneous liabilities will increase by 2 million. If the company’s sales increase, its profit margin will remain at its current level. The company’s dividend payout ratio is 40%. Based on the AFN formula, how much additional capital must the company raise in order to support the 20% increase in sales?Kyle Company had the following information pertaining to 2022:Profit P100,000Sales P1,000,000Asset Turnover ratio 2 timesThe desired minimum rate of return is 15 percent. Questions: 1. What is the Return on Sales? 2. What is the ROI? 3. What is the amount of assets?