Question

Omega Limited has net income of $35 million, earnings before tax of $50 million, earnings before...

Omega Limited has net income of $35 million, earnings before tax of $50 million, earnings before interest and tax of $60 million, gross profit of $80 million, sales of $300 million, assets of $400 million, current liabilities of $40 million, shareholders’ equity of $120 million, dividends of $15 million, shares outstanding of 100 and share price of $2 per share. Calculate sustainable growth rate ratio ratio?

Homework Answers

Answer #1

­SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
ABC Ltd 2017 income statement listed net sales of sh. 125 million, earnings before interest taxes...
ABC Ltd 2017 income statement listed net sales of sh. 125 million, earnings before interest taxes of sh. 56 million, net income availble to common stockholders of sh. 32 million and common stock dividends of sh. 12 million. The year ended balance sheets listed total assets at sh. 525 million, common stockholder equity of sh. 210 million with 2 million shares outstanding. required calculate and explain the meaning of: i) profit margin ii) basic earnings power ratio iii) return on...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets:...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00. What is BFC’s return on equity and the estimated sustainable growth rate? In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets:...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00. What is BFC’s return on equity and the estimated sustainable growth rate? In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.
Company JKL Limited has 10 million stocks outstanding. The shares are trading at 60$ per share....
Company JKL Limited has 10 million stocks outstanding. The shares are trading at 60$ per share. It also has 400 bonds outstanding – each valued at 500.000$. The marginal tax-rate is at 30%. For the expected return of the shareholders is about 14% and the interest rate for the bonds is at 8%. What is JKL’s after-tax WACC?
Question 3 (50 Marks) The following information is relates to the activities of Cox Limited. Statement...
Question 3 The following information is relates to the activities of Cox Limited. Statement of Comprehensive Income for the year ended 31 December 2019. Credit Sales 4870 Cost of Sales (2830) Gross Profit 2040 Less: Operating Expenses Selling Expenses 639 Administration Expenses 421 Depreciation 40 1100 EBIT 1040 Less:Interest (112) Earnings before Tax 928 Less:Tax 30% (278) Profit after Tax 650 Statement of Financial Position as at 31 December 2019. Assets Page 4 of 5 Fixed Assets 451 Current Assets...
Sirius Lawnmower Co. has total equity of $450 million and 150 million shares outstanding. Its ROE...
Sirius Lawnmower Co. has total equity of $450 million and 150 million shares outstanding. Its ROE is 18%. Calculate the company’s EPS. Hydra Corporation has total equity of $300 million and 120 million shares outstanding. Its ROE is 20%. The EPS is 25%. Calculate the company’s dividends per share (round to the nearest penny). HighTeck has an ROE of 15%. Its earnings per share are $2.00, and its dividends per share are $0.20. Estimate HighTeck’s growth rate. PLEASE ANSWER IN...
A firm has Net Income = $20 million from Sales = $150 million. The firm’s Debt...
A firm has Net Income = $20 million from Sales = $150 million. The firm’s Debt = $100 million, and the Book Equity = $100 million. a. What are the firm’s PROFIT MARGIN, ASSET TURNOVER, and ASSET/EQUITY MULTIPLE. b. If the firm wants to maintain its current Asset/Equity ratio, along with a payout ratio of 30% of Net Income, what is the firm’s sustainable growth rate? c. The firm is committed to keeping its Debt/Equity ratio constant in the future....
Travel Corp. has net income of $2 million, an effective tax rate of 35%, interest expense...
Travel Corp. has net income of $2 million, an effective tax rate of 35%, interest expense of $400,000, sales of $30 million, and $15 million in total assets, of which $5 million is debt. Use the DuPont system to calculate its ROE, decomposed into leverage ratio, asset turnover, profit margin, and debt burden. profit margin = ?? asset turnover = ?? equity multiplier = ?? return on equity = ??
The following are selected financial information on firm A and B. You are asked to by...
The following are selected financial information on firm A and B. You are asked to by methodically calculating the missing information. You will assume that Cost of Goods Sold (COGS) is 65% of Sales and that the company uses a marginal tax rate of 35%. FIRM A FIRM B Revenue $ 3,000 $ 3,000 COGS - - Gross Profit 1,050 1,050 Operating Expenses (300) (300) EBIT 750 750 Interest Expense - - Earnings before Tax(EBT) - - Income Tax @35%...
The Amherst Company has a net profits of ​$16 ​million, sales of $187 ​million, and 3.1...
The Amherst Company has a net profits of ​$16 ​million, sales of $187 ​million, and 3.1 million shares of common stock outstanding. The company has total assets of ​$80 million and total​stockholders' equity of ​$53 million. It pays ​$.82 per share in common​ dividends, and the stock trades at ​$19 per share. Given this​ information, determine the​ following: (round all to 2 decimal places) *huge thumbs up for correct answer* a. ​Amherst's EPS is (blank$) ? b.Amherst's book value per...