Question

1. A firm's has a return on equity of 11.6 percent, a profit margin of 6.2...

1. A firm's has a return on equity of 11.6 percent, a profit margin of 6.2 percent, and a payout ratio of 65 percent. What is the retention ratio? What is firm's growth rate? (Show your formula/equation/calculations)

2. A Corp.'s has annual revenue of $412,000 with costs of $212,500. Depreciation is $48,900 and the tax rate is 22.5 percent. The firm has debt outstanding with a value of $185,000 along with 10,500 shares of stock that is selling at $76 a share. The firm has $48,000 of cash. What is the firm's EV/EBITDA ratio? (Show your formula/equation/calculations)

Kindly provide me with the formula/method of getting the final answer, thank you!

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Russell's has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax...
Russell's has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 21 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. The firm has $48,000 of cash of which $29,500 is needed to run the business. A: What is the firm's EV/EBITDA ratio? B: If “comparable” firm or “median industry” EV/EBIDTA is 6.23, is this company undervalued...
Kahn Inc. has a target capital structure of 70% common equity and 30% debt to fund...
Kahn Inc. has a target capital structure of 70% common equity and 30% debt to fund its $9 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt of 9%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D1) is $3, and the current stock price is $33. 1. What is the company's expected...
Kahn Inc. has a target capital structure of 65% common equity and 35% debt to fund...
Kahn Inc. has a target capital structure of 65% common equity and 35% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt of 12%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D1) is $2, and the current stock price is $25. What is the company's expected growth...