Problem 3-14 Sustainable Growth Rate (LG3-6) Last year Lakesha's Lounge Furniture Corporation had an ROE of 17.0 percent and a dividend payout ratio of 23 percent. What is the sustainable growth rate? What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sustainable growth rate %

Problem 3-14 Sustainable Growth Rate (LG3-6) Last year Lakesha's Lounge Furniture Corporation had an ROE of 17.0 percent and a dividend payout ratio of 23 percent. What is the sustainable growth rate? What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sustainable growth rate %

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter2: Developing The Business Idea

Section: Chapter Questions

Problem 9SEP

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Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends Sustainable growth rate Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16. 20.96 9.6% .57 .72] = = $ 107,000 = $ 43,000 %
Problem 3-6 Sustainable Growth If the Premier Corporation has an ROE of 8 percent and a payout ratio of 16 percent, what is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 %24 84,000 24 24,000 : Net income Dividends Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.., 32.16.) Sustainable growth rate ***** ** 23 %23 %23 %23 %23 %23 %23
Problem 3-10 Sustainable Growth Rate The Iron River Company has an ROE of 14.6 percent and a payout ratio of 30 percent. What is the company’s sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You are given the following information on Kaleb's Heavy Equipment: Profit margin Capital intensity Debt-equity ratio Net income Dividends 18 $70,000 $ 15,200 Sustainable growth rate A Calculate the sustainable growth rate. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 5.4% .63 7 Sustainable growth rate $ 56,000 $ 13,800 Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %
mange P10-1 (similar to) Question Help ▼ (Measuring growth) If Pepperdine, Inc.'s return on equity is 19 percent and the management plans to retain 55 percent of earnings for investment purposes, what will be the firm's growth rate? The firm's growth rate will be %. (Round to two decimal places.) Worked ent Scor mpts: Question jestion 4 Question jestion 8 Question s course (Busin ms of Use Priv Enter your answer in the answer box and then click Check Answer. Check Answer Clear All All parts showing (8
Please only answer practice question 5. Solution for questions 3 & 4 below: Question 3. Option A Year Formula 1 2 3 4 5 6 7 Growth rate (Revenue) 1.02 1.03 1.04 1.03 1.025 1.025 Revenue Previous year rev* growth rate 55.00 56.10 57.78 60.09 61.90 63.44 65.03 Growth rate (Expenses) 1.04 1.07 1.04 1.03 1.025 1.025 Expenses Previous year exp*Growth rate (40.00) (41.60) (44.512) (46.29248) (47.681254) (48.87329) (50.09512) Net Income Revenue-Expenses 15.00 14.50 13.27 13.80 14.22 14.57 14.94 Cost of sales(% of revenue) Revenue*3% (1.65) (1.683) (1.73349) (1.80283) (1.856914) (1.90334) (1.95092) Net income (after selling cost) Net income - Cost of sales 13.35 12.82 11.54 12.00 12.36 12.67 12.98 Discount rate 1.09n where n is the year 1.0900 1.1881 1.295029 1.4115816…
Assume the following ratios are constant: Profit margin Total asset turnover 2.5 5.2% Equity multiplier 1.3 Payout ratio 22% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Answer is complete but not entirely correct. Sustainable growth rate 1.09 %
You've collected the following information about Hendrix Guitars, Incorporated: Profit margin Total asset turnover Total debt ratio Payout ratio 4.42% 3.30 .27 278 What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Sustainable growth rate %
0 - 5 B 9 = Investment A Į ) A Investment A Investment B Investment C 3 ) Formulas B Investment A Investment B Investment C S 5 Formulas = C Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Growth Rate (Expected) Year 0 11% $3,000 Year 1 "Take each value in column C and multiply it by its adjacent growth rate in column B (which is 1 plus the percentage expected growth)." ABSOLUTE CELL REFERENCES Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Year 1 #N/A E Year 1 Formulas #N/A #N/A #N/A #N/A #N/A #N/A Year 2 #N/A Year 2 F #N/A #N/A #N/A ▼ ✓ Year 3 #N/A G H RELATIVE CELL REFERENCES Year 3 #N/A #N/A #N/A Year 4 ▼ #N/A Year 5 #N/A #N/A #N/A #N/A Year 5 "Start in column D, then move across allowing the column to change, and multiply the preceding value by its FIXED growth rate in cell $B$13 (which is 1 plus the percentage expected growth) to get the current valu FIXED COLUMN / RELATIVE ROW CELL REFERENCES Year 4 #N/A #N/A #N/A Year 6 ▼ #N/A Year 6 #N/A #N/A #N/A J…
Time Value of Money I Search thi Back to Assignment Attempts Average / 2 7. Problem 5.07 (Present and Future Values of a Cash Flow Stream) еВook Problem Walk-Through An investment will pay $50 at the end of each of the next 3 vears, $250 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 9% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $ Grade it Now Save & Continue Continue without saving DI DD F11 F10 888 F9 FB 80 F7 F6 F5 F4 esc F3 F2 F1 & $ %