Problem 4-7 Calculating Sustainable Growth [LO3]The most recent financial statements for Mandy Company are shown here:Income StatementBalance Sheet$ 11,760 Debt27,450Equity$ 39,210SalesCostsTaxable incomeTaxes (24%)Net income$19,20013,050$ 6,1501,476$ 4,674Current assetsFixed assetsTotalTotal$ 15,88023,330$ 39,210Assets and costs are proportional to sales. Debt and equity are not. The companymaintains a constant 45 percent dividend payout ratio. What is the sustainable growthrate? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

Solution:- Sustainable growth rate means the rate at which the entity will grow in future. It is…

Problem 4-7 Calculating Sustainable Growth [LO3] The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $11,760 Debt 27,450 Equity Sales Costs Taxable income Taxes (24%) Net income $19,200 Current assets 13,050 Fixed assets $ 6,150 1,476 $4,674 Total $ 39,210 $15,880 23,330 Total $ 39,210 Assets and costs are proportional to sales. Debt and equity are not. The company 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 percent rounded to 2 decimal places, e.g., 32.16.)

Problem 4-7 Calculating Sustainable Growth [LO3] The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $11,760 Debt 27,450 Equity Sales Costs Taxable income Taxes (24%) Net income $19,200 Current assets 13,050 Fixed assets $ 6,150 1,476 $4,674 Total $ 39,210 $15,880 23,330 Total $ 39,210 Assets and costs are proportional to sales. Debt and equity are not. The company 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 percent rounded to 2 decimal places, e.g., 32.16.)

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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Fixed assets 267.5 million Sales 1,100.0 million Net Income 52.0 million Current liabilities 106.8 million Current ratio 3.10x Days sales outstanding 41.25 days Return on equity 12.50% Compute the return on assets.
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6 1.42 points The most recent financial statements for Mandy Company are shown below: Balance Sheet $33,500 Debt Income Statement Sales Costs Taxable income Mc Graw Hill OType here to search Tax (24%) Net Income $ 93,000 Current assets 67,050 Fixed assets Total $ 25,950 6,228 $ 19,722 X Answer is complete but not entirely correct. Sustainable growth rate 16.48 % 94,100 Equity Total $ 127,600 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 43,800 83,800 $ 127,600
Problem 19-4 Per-Share Ratios (LO3, CFA6) You are given the following information for Smashville, Inc. Cost of goods sold: $249,000 Investment income: $2,900 Net sales: $394,000 Operating expense: $92,000 Interest expense: $7,400 Dividends: $13,000 Tax rate: 21 % Current liabilities: $22,000 Cash: $21,000 Long-term debt: $9,000 Other assets: $37,000 Fixed assets: $139,000 Other liabilities: $5,000 Investments: $13,000 Operating assets: $49,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Fast pls solve this question correctly in 5 min pls I will give u like for sure Subrbh
Question 95 Using Financial Statements for 2020, debt equity ratio for the year 2020 is 2.30.
Problem 10-15 Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement 1. 2. 3. $ 111,000 208,000 $ 4,032,000 3,507,840 524,160 Average operating assets Margin Turnover ROI Residual income 319,000 $ 205,160 Beginning Balance % $ % 127,000 $ 346,000 564,000 863,000 408,000 248,000 $ 2,556,000 The company paid dividends of $101,160 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate…
Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.8% 49 64 -$99,000 $46,000 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.32.16) Sustainable growth a
3
A. Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit and losses in ratio 3:2. The trial balance below was extracted from the books of the partners as at 31“ December, 2020. DR CR Rent Expenses 400,000 Bank overdraft 100,000 Discount 50,000 100,000 Turnover 2,100,000 Cost of Sales 700,000 Receivable 400,000 Patent 400,000 Stocks (31/12/2019) 150,000 Loan from Devine at 15% per annum 200,000 Land 900,000 Motor vehicle 600,000 Equipment 400,000 Provision for depreciation:
Based on the forecast how much additional financing is needed?
Problem 19.17 If projected sales growth is actually 8.80%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.) (Round answer to 2 decimal places, e.g. 0.45. Enter negative amount using either a negative sign preceding the number e.g. -0.45 or parentheses e.g. (0.45).) Exhibit 19.10 Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) Income Statement Net sales $ 120.0 Costs 108.0 Net income $ 12.0 Dividends 24 $ 7.2 Additions to retained earnings $ 4.8 Balance Sheet Assets Liabilities and Stockholders' Equity Change Change Assets $ 60.0 S 10.0 Total debt $ 20.0 $0.0 4.8 Equity Total liabilities and stockholder's equity 34.8 Total assets $ 60.0 $ 10.0 $ 54.8 $ 5.2 $ 4.8 External financing needed (EFN) $ 5.2 The pro forma balance sheet for Empire Enterprises does not balance, and the difference is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt.

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