The most recent financial statements for Mandy Company are shown here:Income StatementBalance Sheet$ 11,76027,450$ 39,210SalesCostsTaxable incomeTaxes (24%)Net income$19,20013,050$ 6,150Sustainable growth rate1,476$4,674Current assetsFixed assetsTotalDebtEquity%TotalAssets and costs are proportional to sales. Debt and equity are not. The companymaintains a constant 45 percent dividend payout ratio. What is the sustainable growthrate? (Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)$ 15,88023,330$ 39,210

Solution:- Sustainable growth rate means the growth rate forever at which the company will grow in…

The most recent financial statements for Mandy Company are shown here: Balance Sheet $11,760 Debt 27,450 Equity $ 39,210 Income Statement Sales Costs Taxable income Taxes (24%) Net income $19,200 13,050 $ 6,150 Sustainable growth rate 1,476 $4,674 Current assets Fixed assets Total Total 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.) % $ 15,880 23,330 $ 39,210

The most recent financial statements for Mandy Company are shown here: Balance Sheet $11,760 Debt 27,450 Equity $ 39,210 Income Statement Sales Costs Taxable income Taxes (24%) Net income $19,200 13,050 $ 6,150 Sustainable growth rate 1,476 $4,674 Current assets Fixed assets Total Total 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.) % $ 15,880 23,330 $ 39,210

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

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Two companies are in the retail sales business, but their performance results are different, which is evidenced by the following data: Financial performance ratio Return on capital employed (ROCE) Return on ordinary share financing (ROSF) 30% Average debt collection period Average debt payment period Gross profit margin Net profit margin Average stock turnover period 20% 63 days 50 days 40% 10% 52 days Comp A Company B 17% 18% 21 days 45 days 15% 10% 25 days Perform the analysis of these data and describe the differences between these two companies. It is known that in one of them the work with consumers is well organised, while the other one is offering competitive prices. Which of these advantages are attributable to each company?
synoec company has a debt - equity ratio of.85. return on assets is 10.4 percent, and total equity is $785, 000. what is the equity multipler? what is the return on equity? what is the net income?
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The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,940 Debt 31,500 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,100 Current assets 13,800 Fixed assets Internal growth rate $ 6,300 1,323 $ 4,977 Total $ 43,440 % $ 16,420 27,020 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 internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Total $ 43,440
40. JoelEmbi, Inc. has an ROA (return on assets) of 15.2 percent, total assets of $4,500,000 and a net profit margin of 7.6 percent. What are JoelEmbi, Inc.'s annual sales? Enter your answer a whole number (i.e., rounded to zero decimal places. 41. JimmyButle, LLC. has a debt-to-total assets ratio of 39.6%. What is the company's debt-to-equity ratio? Enter your answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places. 42. JohCol, Inc has a debt ratio of 27.0% and ROE = 20.2%. What is JohCol, Inc.'s ROA? Enter your answer as a percent rounded to 1 decimal place. Enter 43. PauGeo, Inc. has an ROA of 18.2% and a debt/equity ratio of 0.83. The firm's ROE is answer as a percent rounded to 1 decimal place. 44. Assume that TraeYoung, Inc. has: Debt ratio 60% ● Net profit margin = 15.2% ● Return on assets (ROA) = 52% Find Trae Young's Total Asset Turnover ratio. Enter answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places.
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Income Statement Balance Sheet Sales $ 29,300 Assets $ 22,500 Debt $ 6,000 Costs 22,870 Equity 16,500 Net income $ 6,430 Total $ 22,500 Total $ 22,500 The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement Pro forma balance sheet Sales Assets Debt Costs Equity Net income Total Total What is the external financing needed?

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