Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data: (in millions of dollars) Earnings per share (EPS) (DPS) vidends per shar Book value per share (BVPS) Market value (price) per share (MVPS) 2024 $ 715 330 $ 385 50 335 42 $ 293 53 $ 240 50 $ 190 $5 $185 65 $ 120 $ 2.846 $ 1.000 $ 6.877 $15.70 2023 $ 632 275 $ 357 45 312 40 $ 272 50 $ 222 67 $ 155 $5 $ 150 65 $85 $ 2.308 1.6 $ 5.031 $ 13.50
Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data: (in millions of dollars) Earnings per share (EPS) (DPS) vidends per shar Book value per share (BVPS) Market value (price) per share (MVPS) 2024 $ 715 330 $ 385 50 335 42 $ 293 53 $ 240 50 $ 190 $5 $185 65 $ 120 $ 2.846 $ 1.000 $ 6.877 $15.70 2023 $ 632 275 $ 357 45 312 40 $ 272 50 $ 222 67 $ 155 $5 $ 150 65 $85 $ 2.308 1.6 $ 5.031 $ 13.50
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
Related questions
Concept explainers
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
Bhupatbhai

Transcribed Image Text:Problem 3-30 Internal and Sustainable Growth Rates (LG3-6)
Use the following financial statements for Lake of Egypt Marina, Incorporated
Assets
Current assets:
Cash and marketable securities
Accounts receivable
Inventory
Total
Fixed assets:
Gross plant and equipment
Less: Depreciation
Net plant and equipment
Other long-term assets
Total
Total assets
Net sales (all credit)
Less: Cost of goods sold.
Gross profits
Less: Other operating expenses
Less: Common stock dividends
Addition to retained earnings
Per (common) share data:
Earnings per share (EPS)
Dividends per share (DPS)
Book value per share (BVPS)
Market value (price) per share (MVPS)
LAKE OF EGYPT MARINA, INCORPORATED
Balance Sheet as of December 31, 2024 and 2023
(in millions of dollars)
2024
Internal growth rate
Sustainable growth rate
$ 119
155
240
$ 514
$ 620
162
$ 458
Net income
Less: Preferred stock dividends
Net income available to common stockholders
%
%
70
$ 528
2023
$ 45
150
230
$ 425
$ 511
120
$ 391
69
$ 460
$ 1,042 $ 885 Total liabilities and equity
Liabilities and Equity
Current liabilities:
LAKE OF EGYPT MARINA, INCORPORATED
Income Statement for Years Ending December 31, 2024 and 2023
(in millions of dollars)
Accrued wages and taxes
Accounts payable
Notes payable
Total
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Less: Depreciation
Earnings before interest and taxes (EBIT)
Less: Interest
Earnings before taxes (EBT)
Less: Taxes
Long-term debt:
Stockholders' equity:
Preferred stock (5 million shares)
Common stock and paid-in surplus (65 million shares)
Retained earnings
Total
Calculate the internal and sustainable growth rate for Lake of Egypt Marina, Incorporated.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
2024
$ 715
330
$385
50
335
42
$ 293
53
$ 240
50
$ 190
$5
$ 185
65
$ 120
$ 2.846
$ 1.000
$ 6.877
$15.70
2023
$ 632
275
$ 357
45
312
40
$ 272
50
$ 222
67
$ 155
$5
$150
65
$85
$ 2.308
$ 1.000
$ 5.031
$ 13.50
2024
$ 60
110
100
$270
$ 320
$5
65
382
$ 452
$
1,042
2023
$ 63
100
90
$ 253
$300
$5
65
262
$332
$ 885
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education