Question

1. WVU Corporation has a sustainable growth rate of 15%, total assets to sales ratio of...

1. WVU Corporation has a sustainable growth rate of 15%, total assets to sales ratio of 1.5, profit margin of 10%, and dividend payout of 50%. What is the firm’s target D/E ratio?

Select one:

a. 2.33

b. 2.67

c. 2.91

d. 3.33

e. 3.91

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
Assuming the following rates of a firm are constant, what is its sustainable growth rate? Total...
Assuming the following rates of a firm are constant, what is its sustainable growth rate? Total asset turnover = 1.5 Profit margin = 5.0% Equity multiplier = 2.4 Dividend payout ratio = 20% A. 21.22% B. 15.52% C. 17.73% D. 16.82% E. 18.99%
NewCorp wants a sustainable growth rate of 2.69% while maintaining a 40.00% dividend payout ratio and...
NewCorp wants a sustainable growth rate of 2.69% while maintaining a 40.00% dividend payout ratio and a profit margin of 5 percent. The company has a capital intensity ratio of 1.5. What equity multiplier (EM) is required to achieve the company's desired rate of growth? A. 1.31 B. 1.91 C. 1.24 D. 1.95
A venture has a sustainable growth rate of 15% per year.  The entrepreneur wants to target a...
A venture has a sustainable growth rate of 15% per year.  The entrepreneur wants to target a growth rate of 25%. To achieve this in a way that would not change the ratios comprising its sustainable growth rate, the entrepreneur must. A. Add 10% of new equity each year. B. Add 10% new debt each year. C. Maintain its profitability and dividend payout ratio. D. All of the above
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10 percent a year, a debt–equity...
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10 percent a year, a debt–equity ratio of .37, and a dividend payout ratio of 34 percent. The ratio of total assets to sales is constant at 1.38.    What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)    Profit margin             %
A firm wants a sustainable growth rate of 3.33 percent while maintaining a 31 percent dividend...
A firm wants a sustainable growth rate of 3.33 percent while maintaining a 31 percent dividend payout ratio and a profit margin of 5 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8.5 percent a year, a debt–equity...
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8.5 percent a year, a debt–equity ratio of .53, and a dividend payout ratio of 26 percent. The ratio of total assets to sales is constant at 1.22.    What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)    Profit margin             %
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8.5 percent a year, a debt–equity...
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8.5 percent a year, a debt–equity ratio of .53, and a dividend payout ratio of 26 percent. The ratio of total assets to sales is constant at 1.22.    What profit margin must the firm achieve in order to meet its growth rate goal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)    Profit margin             %
Sustainable Growth Rate You are considering investing in Annie’s Eatery. You have been able to locate...
Sustainable Growth Rate You are considering investing in Annie’s Eatery. You have been able to locate the following information on the firm: Total assets are $40 million, accounts receivable are $6.0 million, ACP is 30 days, net income is $4.75 million, debt-to-equity is 1.5 times, and dividend payout ratio is 45 percent. All sales are on credit. Annie’s is considering loosening its credit policy such that ACP will increase to 35 days. The change is expected to increase credit sales...
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 44.5%,...
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 44.5%, capital intensity ratio = 2.43 times, profit margin = 17%, and dividend payout ratio = 34%. What is the sustainable growth rate for Rock? (Do not round intermediate steps.)
A firm wants a sustainable growth rate of 2.55% while maintaining a 35.00% dividend payout ratio...
A firm wants a sustainable growth rate of 2.55% while maintaining a 35.00% dividend payout ratio and a profit margin of 4.00%. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired ratio of growth? A) 0.09 B) 0.23 C) 0.96 D) 0.91
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT