You've collected the following information about Molino, Inc.190,000SalesNet income $13,600Dividends 8,800bt $ 76,00060,000Total equitya. What is the sustainable growth rate for the company? (Do not round intermediateb. If it does grow at this rate, how much new borrowing will take place in the comingc. What growth rate could be supported with no outside financing at all? (Do not roundcalculations and enter your answer as a percent rounded to 2 decimal places, e.g,3216.)year, assuming a constant debt-equity ratio? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g., 32.16.)intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)Answer is complete but not entirely correct.a. Sustainable growth rateb. Additional borrowingc. Internal growth rate8.69 )%6,600.923.65 196

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Description: You've collected the following information about Molino, Inc.190,000SalesNet income $13,600Dividends 8,800bt $ 76,00060,000Total equitya. What is the sustainable growth rate for the company? (Do not round intermediateb. If it does grow at this rate,

a.To calculate the sustainable growth rate, first calculate the return on equity and retention ratio…

Answered: You've collected the following…

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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Company decided to change its capital structure. Long term loan will be increased from 3 million to 20 million.Interest rate for loan is 9% annually. Additional loan will be used for share payback.Company has 2 million shares in the market with current price of 17.00 euros. Find a break-even EBIT levelFind EPS with break-even EBIT Solutions and Formulas in Excel! Please answer fast i give you upvote.
Can you please answer this part c follow up question: c) Suppose the initial £90,000 is raised by borrowing at the risk-free interest rateinstead of issuing equity. What are the cash flows to equity and debt holders, andwhat is the initial value of the levered equity according to Modigliani and Miller’sPropositions? Is the company’s cost of equity the same as before? Overall, can thecompany raise the same amount of capital as before? Explain your reasoning.
Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment.
Q.A company will earn net profits of $100,000 if the economy booms (probability of 80%) and net profits of $60,000 if the economy enters a recession (probability of 20%). The company wants to take out a loan for $74,000 to finance its operations.Treasuries of the same maturity offer an interest rate of 6%. Assume risk neutrality. A)What payoff would the bank receive if it invested $74,000 in Treasuries? B)What payout should the bank be looking for during the boom (in $)? C)What interest rate should the bank quote?
A firm has an asset turnover ratio of 5.0. Its plowback ratio is 50%, and it is all-equity-financed. If the profit margin of the firm is 3%, what is the maximum payout ratio that will allow it to grow at 5% without resorting to external financing? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Maximum payout ratio %
Sales 4000000s 2. Net incouae 400000s 3. Dividends 240000 4 Debt 400000s 5- Total equity 800000s including 400000S RE 6- Total assets 1400000s Calculate 1- Sustainable Growth rate 2- If the extracted percentage is approved in (1)what is the amount of external financing (the borrower) for the next year. 3- Calculate the growth rate that doesnot require external financing-
Bulldogs inc. will least likely experience which of the following if the firm shifts its credit terms from n/25 to 3/10, n/25 a. the computed days sales outstanding will decrease b. the percentage of credit sales from the total sales revenue will increase c. cash conversion cycle will tend to increase d. decrease in short-term borrowings
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You are considering a new supplier that you estimate would reduce your costs 0.025, increasing overall EBIT margin the same amount, or 250 basis points. Tax burden 0.79 Interest burden 0.8 Operating margin Asset turnover 2.1 Leverage ratio 1.2 Equity 56 Before the changes are made the firm was intrinsically valued at 45.54 After the changes, what would the new value be assuming the new ROE, growth, and EPS1. The firm pays dividends as 0.61 of EPS. The discount rate is 0.15" O 64.88 O 70.24 62.35 O 67.36 0.08 O 73.13
/
Based on the information above,(a) Do you agree that REC Bank’s net worth will increase when interest rate rises? Justify your answer with an appropriate analysis. (b) Evaluate the impact of reducing interest rate from 10 percent to 8 percent on the net worth of REC Bank.
Sub : FinancePls answer very fast.I ll upvote. Thank You An all-equity company decides to recapitalize. The company has an unlevered beta of 1.1, the market risk premium is 6% and the risk-free rate is 5%. The company's tax rate is 25%. If the company starts to borrow with a 25% debt ratio, what will be the levered beta using Hamada’s equation? What is the cost of equity before and after the recapitalization respectively? Why is the cost of equity higher after the recapitalization?

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