Question

currently, your firm has interest payments of 975, cost of goods sold of 29000, taxes of...

currently, your firm has interest payments of 975, cost of goods sold of 29000, taxes of 4920, dividends of 4810, sales of 62888, depreciation of 8200, total assets of 105200, and total debt of 51600. what rate of growth is possible for your firm if your debt-equity ratio does not change and you do not wish to take on additional equity financing?

A) 27.16% B) 12.27% C) 23.82% D) 37.22% E) 38.80%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) Coventry Comfort, Inc. has equity of $168,500, total assets of $195,000, net income of $63,000,...
1) Coventry Comfort, Inc. has equity of $168,500, total assets of $195,000, net income of $63,000, and dividends of $37,800. Calculate the sustainable growth rate?          2) Delta Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current liabilities of $37,200, long-term debt of $123,800, and net working capital of $16,700, and net fixed assets of $391,500. No external equity financing is possible. What is the internal growth...
Major Manuscripts, Inc. 2009 Income Statement Net sales 7,600 Cost of goods sold 6,665 Depreciation 210...
Major Manuscripts, Inc. 2009 Income Statement Net sales 7,600 Cost of goods sold 6,665 Depreciation 210 Earnings before interest and taxes 725 Interest paid 21 Taxable Income 704 Taxes 245 Net income 459      Dividends 206 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2009 Cash 2,150 Accounts payable 1,550 Accounts rec. 860 Long-term debt 280 Inventory 2,300 Common stock 2,500 Total 5,310 Retained earnings 4,000 Net fixed assets 3,020 Total assets 8,330 Total liabilities & equity 8,330 Major Manuscripts, Inc....
Suppose there are no taxes. Firm ABC has no​ debt, and firm XYZ has debt of...
Suppose there are no taxes. Firm ABC has no​ debt, and firm XYZ has debt of $3,000 on which it pays interest of 11% each year. Both companies have identical projects that generate free cash flows of $700 or $1,400 each year. After paying any interest on​ debt, both companies use all remaining free cash flows to pay dividends each year. a. In the table​ below, fill in the debt payments and equity dividends each firm will receive given each...
6. Your firm currently has net income to common equity of $1,500,000 and a dividend payout...
6. Your firm currently has net income to common equity of $1,500,000 and a dividend payout of 30%. If the firm’s return on assets is 10% and the return on equity is 8%, at rate of growth will dividends grow if the stock is currently publicly traded?
Sales 1,067,500 Cost of goods sold 1,392,500 Selling, general and administrative 145,000 Earnings before interest and...
Sales 1,067,500 Cost of goods sold 1,392,500 Selling, general and administrative 145,000 Earnings before interest and taxes (EBIT) 70,000 Federal and state income taxes (40%) 18,200 Net income 27,300 HH Company Balance Sheet as of December 31, 20XX Assets 80,500 Accounts Payable 132,000 Accounts Receivable 334,500 Current portion of debt 84,000 Inventories 240,000 Other current liabilities 114,000 Total current assets 655,000 Total current liabilities 330,000 Net fixed assets 292,500 Long-term debt 256,500 Total assets 947,500 Total liabilities 586,500 Common equity...
A company has annual sales of $2.5 million and a Cost of Goods Sold of $1,000,000....
A company has annual sales of $2.5 million and a Cost of Goods Sold of $1,000,000. The company is weighing additional financing for its operations with increased debt versus the issue of additional stock shares. The choice will impact the company’s financial leverage and earnings per share. Financing options: i.    Issue 1,000 new stock shares (in addition to its current 2,000): company would keep its current monthly interest payments at $10,000 by raising more funds through a new stock...
Table 5: FINC300 Inc. Income Statement 2013 Sales $7000 Less: Cost of goods sold 4000 Gross...
Table 5: FINC300 Inc. Income Statement 2013 Sales $7000 Less: Cost of goods sold 4000 Gross Profit 3000 Less: Operating expenses - Selling expenses 200 General and administrative expenses 400 Lease expenses 100 Depreciation expenses 80 Total operating expenses 780 Operating profits 2220 Less: Interest expenses 200 Net profit before taxes 2020 Less: Taxes (30%) 606 Net profit after taxes 1414 Less: Preferred stock dividends 20 Earnings available for common stockholders 1394 Less: Common stock dividends 894 Retained earnings 500...
The Expo Company has the most recent financial statements as follows. The current liabilities are consisted...
The Expo Company has the most recent financial statements as follows. The current liabilities are consisted solely of accounts payables. The company maintains a constant dividend payout ratio. The projected sales growth over the next year is 10%. If the Expo Company does not want to incur any additional external financing, what is the maximum rate of growth the firm could achieve? Income Statement Balance Sheet Assets Liabilities and Owners' Equity Sales 4,200.0 Current Assets 900.0 Current Liabilities 500.0 Costs...
A firm has sales of $4,100, net income of $640, total assets of $14,700, and total...
A firm has sales of $4,100, net income of $640, total assets of $14,700, and total debt of $10,600. Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $5,969. What is the amount of the external financing needed? $5,769 $5,519 $6,049 $5,894 $5,639
An unlevered firm has a cost of capital of 16% and earnings before interest and taxes...
An unlevered firm has a cost of capital of 16% and earnings before interest and taxes of $225,000. A levered firm with the same operations and assets has both a book value and a face value of debt of $850,000 with an 8% annual coupon. Assume no taxes, no bankruptcy. What is the value of equity for the levered firm? Select one: A. 624,250 B. 556,250 C. 850,000 D. 556,250
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT