Provide correct answer for this accounting question Your firm has an ROE of 11.2%, a payout ratio of 24%, $586, 300 ofstockholders' equity, and $356,000 of debt. If you grow at yoursustainable growth rate this year, how much additional debt will youneed to issue?The sustainable growth rate is %. (Round to three decimal place.)The ending total assets at the sustainable growth rate will be $(Round to the nearest dollar.)Because the firm grew at its sustainable growth rate, its debt/equityratio remains constant at 0.607198 and the debt-to-assets ratio will be0.377799. Thus, the new debt in the capital structure will be 0.377799times $1,022, 509 = $386, 303. Since the firm started at $356,000, it willissue about $30,303 in additional debt. Is the above statement true orfalse?

Step 1: Define ROEReturn on equity is used to estimate the firm's profit performance and investors…

Answered: Your firm has an ROE of 11.2%, a payout…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Corp. is anticipating a sustained growth rate of 15% per year. Is it possible for them to achieve this growth rate given the following numbers. Debtequity ratio of 0.40 times Profit margin is 5.3 percent Capital Intensity Ratio is 0,75 times to answer: determine what the dividend payout ratio must be. How do you interpret the result?
Your firm has an ROE of 12.1%, a payout ratio of 21%, $581,200 of stockholders' equity, and $366,400 of debt. If you grow at your sustainable growth rate this year, how much additional debt will you need to issue? The sustainable growth rate is %. (Round to three decimal place.)
You’ve collected the following information about Odyssey, Inc.:Sales =$165,000Net income = $14,800Dividends = $9,300Total debt = $68,000Total equity = $51,000What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt –equity ratio? What growth rate could be supported with no outside financing at all?
Your firm has an ROE of 12.1%, a payout ratio of 27%, $594,200 of stockholders' equity, and $386,100 of debt. If you grow at your sustainable growth rate this year, how much additional debt will you need to issue?
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A firm will earn a taxable net return of $500 million next year. If it took on debt today, it would have to pay creditors\varepsilon(rDebt) = 5% + 10% x wDebt2. Thus, if the firm has 100% debt, the financial markets would demand 15% expected rate of return. Further, assume that the financial markets will lend the firm capital at this overall net cost of 15%, regardless of how the firm is financed. The firm is in the 25% marginal tax bracket. 1. If the firmis fully equity-financed, what is its value? 2. Using APV, if the firm is financed with equal amounts of debt and equity today, what is its value? 3. Using WACC, if the firm is financed with equal amounts of debt and equity today, what is its value? 4. Does this firm have an optimal capital structure? If so, what is its APV and WACC?
Kimbi Limited had the following items on its balance sheet at the beginning of the year: Assets Cash Property Plant & Equipment Liabilities and equity $50,000 Debt $ 350,000 Equity $ 100, 000 $ 300,000 The net profit this year is $20, 000 with a dividend of $5, 750.
XYZ Corp. is anticipating a sustained growth rate of 15% per year. Is it possible for them to achieve this growth rate given the following numbers. Debtequity ratio of 0.40 times Profit margin is 5.3 percent Capital Intensity Ratio is 0.75 times To answer: determine what the dividend payout ratio must be. How do you interpret the result? no excel plz
You have located the following information on Webb’s Heating & Air Conditioning: debt ratio is 63 percent, capital intensity is 1.20 times, profit margin is 11.6 percent, and the dividend payout is 16.00 percent. Calculate the sustainable growth rate for Webb. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Sustainable growth rate = ____.__ %
I need help with this problem and how to set it up in excel with formulas.
For the next fiscal year, you forecast net income of $51,100 and ending assets of $506,900. Your firm's payout ratio is 10.2%. Your beginning stockholders' equity is $298,800, and your beginning total liabilities are $120,700. Your non-debt liabilities, such as accounts payable, are forecasted to increase by $10,000. What will be your net new financing needed for next year? The net financing required will be $. (Round to the nearest dollar.) C
Pharoah Inc., is expected to grow at a rate of 20.000 percent for the next five years and then settle to a constant growth rate of 12.000 percent. The company recently paid a dividend of $2.35. The required rate of return is 17.000 percent.Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (a) Find the present value of the dividends during the rapid-growth period if dividends grow at the same rate as the company. (Round dividends to 3 decimal places, e.g. 3.351. Round present value of dividends to 2 decimal places, e.g. 15.20.) Present value of dividends $Type your answer here

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