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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 LAKE OF EGYPT MARINA, INCORPORATED Balance Sheet as of December 31, 2024 and 2023 (in millions of dollars) 2024 $ 119 155 240 $ 514 $ 620 162 $ 458 70 $ 528 $ 1,042 2023 Liabilities and Equity Current liabilities: $ 45 150 230 $ 425 Accrued wages and taxes Accounts payable Notes payable. Total Long-term debt: $511 Stockholders' equity: 120 $ 391 69 $ 460 $ 885 Total liabilities and equity Preferred stock (5 million shares) Common stock and paid-in surplus (65 million shares) Retained earnings Total 2024 $ 60 110 100 $270 $ 320 $5 65 382 $ 452 $ 1,042

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 LAKE OF EGYPT MARINA, INCORPORATED Balance Sheet as of December 31, 2024 and 2023 (in millions of dollars) 2024 $ 119 155 240 $ 514 $ 620 162 $ 458 70 $ 528 $ 1,042 2023 Liabilities and Equity Current liabilities: $ 45 150 230 $ 425 Accrued wages and taxes Accounts payable Notes payable. Total Long-term debt: $511 Stockholders' equity: 120 $ 391 69 $ 460 $ 885 Total liabilities and equity Preferred stock (5 million shares) Common stock and paid-in surplus (65 million shares) Retained earnings Total 2024 $ 60 110 100 $270 $ 320 $5 65 382 $ 452 $ 1,042

Essentials Of Investments
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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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 LAKE OF EGYPT MARINA, INCORPORATED Income Statement for Years Ending December 31, 2024 and 2023 (in millions of dollars) $ 511 120 $ 391 69 $ 460 $ 1,042 $ 885 Total liabilities and equity Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Liabilities and Equity Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total 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
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 LAKE OF EGYPT MARINA, INCORPORATED Income Statement for Years Ending December 31, 2024 and 2023 (in millions of dollars) $ 511 120 $ 391 69 $ 460 $ 1,042 $ 885 Total liabilities and equity Earnings before interest, taxes, depreciation, and amortization (EBITDA) Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Liabilities and Equity Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total 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
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