Tinsley, Incorporated, wishes to maintain a growth rate of 17.5 percent per year and a debt-equity ratio of 1.2. The profit margin is 4.2 percent, and total asset turnover is constant at 1.02. a. What is the dividend payout ratio? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the maximum sustainable growth rate for this company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Dividend payout ratio b. Sustainable growth rate % %

Tinsley, Incorporated, wishes to maintain a growth rate of 17.5 percent per year and a debt-equity ratio of 1.2. The profit margin is 4.2 percent, and total asset turnover is constant at 1.02. a. What is the dividend payout ratio? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the maximum sustainable growth rate for this company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Dividend payout ratio b. Sustainable growth rate % %

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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Suppose you are comparing two companies that are in the same line of business. Company C has an operating cycle of 40 days, and Company D has an operating cycle of 60 days. Company C has a current ratio of 3.0 and Company D has a current ratio of 2.5 . Comment on the liquidity of the two companies. Which company has more risk of not satisfying its near- term obligation? Why?
In the following balance sheet, estimate the impact on the economic value of equity (EVE).if all interest rates decrease by 3%, EVE=$( )Loan A (7.5%, 5 year) = $500Deposit B (5%, 2 year) = $500 Total Assets = $500Total Liabilities = $500 a. 36.73 b. 38.5 c. 40.22 d. 41.77
6ME
Ace Industries has current assets equal to $9 million. The company's current ratio is 2.5, and its quick ratio is 2.1. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $
Upon further investigation, you have found that the amount of account payables for Companies A and X at the start of the lyear is 20,000 and 30,000, respectively. Apart from that, the amount of credit purchase for Companies A and B is 250,000 and 280,000, respectively. Based on all this information, recommend on which company that gire lower risk to your company. The recommendation must be ustified by the following analysis: a) hiquidity analysis. b) Solvency analysis. c) Any other financial analysis that you think can help in making your decision. Table: Balance Sheet for Company A and Company B Assets Fixed Assets Other Non-Current Assets Account Receivables Inventory Cash 250,000 80,000 120,000 80,000 120,000 650,000 280,000 110,000 140,000 100,000 100,000 ТОTAL 730,000 Liabilities Саpital Long Term Debt Account Payables Other Current Liabilities ТОTAL 250,000 120,000 160,000 120,000 650,000 280,000 140,000 180,000 130,000 730,000
Premier Corporation has an ROE of 14.9 percent and a payout ratio of 48 percent. What is its 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. Answer is complete but not entirely correct. Sustainable growth rate 7.75 %
This is 1 question that has 2 sub-parts. Please answer both questions. NB!!! Round off both answers to 2 decimal places.
The following table shows the option of a Business in which the value at time zero means the disbursement, and the others, the expected revenues. By visual inspection, it appears that for an interest rate equal to zero, the return on this investment is positive, and for an interest rate of 50% per year the return is negative. (Consider √69 = 8.307).Values in reais Expiration date in years-10,000 06,000 16,000 2So, check the option that represents the internal annual rate of return for this Business proposal.A8.33%B13.07%.C15.67%.D16.61%.E16.66%.
You've collected the following information about Hendrix Guitars, Incorporated: Profit margin Total asset turnover Total debt ratio Payout ratio 4.42% 3.30 .27 278 What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Sustainable growth rate %
Find the overall percentage change in the price of a good if it rises by 5% in a year but is then reduced by 30% in a sale. Select one: а. 25% b. 26.5% C. 35% d. 73.5% е. Cannot be determined
If we know that a firm has a net profit margin of 4.3%, total asset turnover of 0.77, and a financial leverage multiplier of 1.37, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity? The firm's ROE is %. (Round to two decimal places.) What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity? (Select from the drop-down menus.) Observe the modified DuPont formula (see) and notice that each component can be compared with industry standards to assess the firm's performance. Therefore, the advantage of using the Dupont system is that ROE is broken into three distinct components. Starting at the right we see how has increased assets over the owners' original equity. Next, moving to the left, we see how efficiently the firm used its sales. to…
Now that you know how to calculate the ratios, you have have been teaching your assistant about them. He has calculated the following ratios for Joe's Pool Room, Inc., but cannot answer the question, "What is Joe's Pool Room, Inc's. Debt to Equity Ratio? This is a level 3 question. Total Asset Turnover (TATO): ||1.4x| Return on Assets (ROA): 0.05 Return of Equity (ROE): 0.13 Current Ratio 1.5

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