Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 Sustainable growth rate $6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 32,400 % 44,380 Debt Equity $ 16,540 27,840 Assets and costs are proportional to sales. Debt and equity are not. The compan maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percen- rounded to 2 decimal places, e.g., 32.16.) Total $44,380

Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 Sustainable growth rate $6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 32,400 % 44,380 Debt Equity $ 16,540 27,840 Assets and costs are proportional to sales. Debt and equity are not. The compan maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percen- rounded to 2 decimal places, e.g., 32.16.) Total $44,380

Name: Income StatementSalesCostsTaxable incomeTaxes (21%)Net income$20,3001
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Description: Income StatementSalesCostsTaxable incomeTaxes (21%)Net income$20,30013,900Sustainable growth rate$6,4001,344$5,056Current assetsFixed assetsTotalBalance Sheet$11,980 Debt32,400 Equity%$44,380Total$ 16,54027,840Assets and costs are proportional to sa

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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Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment.
(please type answer).
Zeebadee Inc. wants to forecast free cash flow to equity (FCFE) using the percent-of- sales method. Prior year sales were $10,000. What is FCFE in Year 5 based on the information presented below? Sales growth Profit margin Net FCInv (% of Sales) WCInv (% of Sales) DR $2,335.93 $1,687.06 $1,008.00 $1,557.29 Year 1 Year 4 Year 2 Year 3 14.00% 12.00% 10.00% 10.00% 9.00% 10.00% 12.00% 12.00% 8.00% 8.00% 8.00% 6.00% 3.00% 3.00% 2.00% 3.00% 40.00% 40.00% 40.00% 40.00% Year 5 5.00% 12.00% 3.00% 1.00% 40.00% 4
Use the information below to calculate WACC given the Market Capitalization of the company: Market Cap = 193.2 Million EBIT = 17.2 Million Depreciation = 4.2 Million Capital Expenditures = - 3.8 Million Change in W/C = 2.1 Million growth = 7% FCF = ? WACC = ?
Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 1 270 12.5% 32.40 Less: Income Tax (37%) (6.48) Less Increase in NWC (12% of Change in Sales) 3,60 Free Cash Flow 22.32 Growth versus Prior Year EBIT (10% of Sales) 0 240 OA. $4.27 OB. $7.47 OC. $12.8 OD. $5.12 2 290 7.4% 34.80 (6.96) 2.40 25.44 ACCE 3 310 6.9% 37.20 (7.44) 2.40 27.36 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%, $30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? 4 325.5 5.0% 39.06 (7.81) 1.86 29.388
Premier Corporation has an ROE of 12 percent and a payout ratio of 20 percent. What is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all…
Based on the following information you have collected, what is the sustainable growth rate (SGR) for Leo's Photography Studio? Profit Margin Debt/Equity Ratio Capital Intensity Ratio Net Income Dividends O A. O B. O C. O D. 12.42% 8.52% 15.15% 13.63% 7.1% 0.60 0.75 $48,000 $10,000
The total in rate sensitive assets for a financial institution is $120 million and the total in rate sensitive liabilities is $95 million. What is the cumulative pricing gap (CGAP) and what is the interest rate sensitivity gap ratio if total assets equals $195 million? What would the projected change to net income be if interest rates rose by 2% on both assets and liabilities? What would the projected change to net income be if interest rates declined by 2% on both assets and liabilities? What would the projected change to net income be if interest rates rose by 1.8% on assets and 1.5% on liabilities? What would the projected change to net income be if interest rates declined by 1.8% on assets and 1.5% on liabilities?
A firm wants a sustainable growth rate of 2.73 percent while maintaining a dividend payout ratio of 39 percent and a profit margin of 6 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?
Dog
You've collected the following information about Hendrix Guitars, Incorporated: Profit margin Total asset turnover Total debt ratio Payout ratio 1 T Sustainable growth rate - I 4.41% 3.20 .28 26% What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent roundec Answer is complete but not entirely correct. 11.75 %

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