7. EXCEL] Addition to retained earnings: Northwood, Inc., has revenue of $455,316, costs of $316,487, and a tax rate of 31 percent. If the firm pays out 45 percent of its earnings as dividends every year, how much earnings are retained and what is the firm's retention ratio?

Q: Krypton Engineering expects to have net profit next year of $28.18 million and free cash flow of…

A: a.Next year net income = $28.18 millionFree cash flow = $22.18 millionTax rate = 40%Increase in…

Q: Bl Inc currently has earnings before interest and taxes of P3,000,000, a degree of combined leverage…

A: The degree of operating leverage can be used to estimate change in operating income with respect to…

Q: 1. You have the following information on the income statement this year: Unit sales: 1,000…

A: Financial statements are official records companies maintain to inform different stakeholders about…

Q: Using the information in the following table, calculate this company's: $49,400 $393,500 $249,900 0%…

A: Internal growth rate is growth rate that is generated by company without using outside funds…

Q: An enterprise with a profit before interest and tax of 150,000, a compound leverage level of 3 and a…

A: Compound Leverage =3 Financial Leverage = 1.5 Current Profit before interest and tax =150000…

Q: NoNuns Cos. has a 20 percent tax rate and has $305,600,000 in assets, currently financed entirely…

A: Break Even Level of EBIT = Total Assets * Debt ratio * Interest Rate on Debt

Q: Hal's Ice Cream Stands $ Thousands Assets Cash and cash equivalents Accounts receivable Inventories…

A: The question is related to Information regarding yea 2022 based the financial statements provided…

Q: A company has dividend yield of 27%, and asset turnover of 1.8 times per year. If the return on…

A: Option a: This option is correct. Step 1:We have to calculate the profit margin. The formula for…

Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…

A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…

Q: Assume that a firm has Sales of $25,000,000, total assets of $20,000,000, current assets of…

A: AFN or additional funds need refers to the additional funds needed by a company to expand or carry…

Q: An analyst gathered the following data about a company for the coming year: Sales are estimated to…

A: Sales = s = $3,000,000Tax Rate = t = 30%Interest Expenses = i = $150,000Number of Common Shares = n…

Q: . A company seeks to maintain an internal growth rate of 13%, with a retention ratio (also called a…

A: The internal growth rate is the rate of growth in sales that does not require any external…

Q: A firm has $60 million in equity and $40 million of debt, it pays dividends of 20% of net income,…

A: Equity=$60 million Debt=$40 million Net Income=$20 million Dividend=20% Required: Sustainable Growth…

Q: 10. [EXCEL] Percent of sales: Given the data for Cattail Corporation in Problem 9, if you assume…

A: Pro-forma income statement and balance sheet is prepared in proportion to increase in sales. Refer…

Q: IF a corporation earns $240,000 and the payout ratio ( proportion distributed) is 20 percent, what…

A: Given: Total earnings = $240000 Payout ratio =20% = 0.20

Q: Suppose C Manufacturings sales increase 20% over the next year.  Assuming all asset accounts change…

A: The question can be solved by first determining the forecasted Income statement. This can be done…

Q: Vijay

A: Let's dissect the computation in detail: 1. To begin, figure out the retained earnings, or the part…

Q: Suppose that Gyp Sum Industries currently has the balance sheet shown. below, and that sales for the…

A: Step 1:A balance sheet is a type of financial statement that shows a company's assets, liabilities,…

Q: Calculate the ROI and calculate the Economic Profit.

A: Return on investment can be calculated with the formula ROI = Net IncomeInvestment=16,000100,000=…

Q: 4. ABC Inc. Distributes 70 % of its profits and uses the rest in the operations of the business. The…

A: Intrinsic value (IV) of the share means actual or current value based on firm’s performance. It is…

Q: According to the value-based management model, what is the stock price per share given the following…

A: Value-Based Management (VBM) is a management philosophy that focuses on maximizing shareholder value…

Q: Halliford Corporation expects to have earnings this coming year of $2.71 per share. Halliford plans…

A: Growth rate =Previous year Retention ratio * ROEEPS =Previous year EPS *(1+growth rate) Dividend =…

Q: Skunk Products' EBIT is $1000, its tax rate is 35%, depreciation is $100, capital expenditures are…

A: Given EBIT is $1000 Tax rate is 35%

Q: If Ford Motor Company's return on equity is 16% and the management retains 60% of earnings for…

A: The Return on Equity (ROE) is given as 16% The retention ratio is 60% (or 0.60)

Q: What is the sustainable growth rate given the following information: Shareholders' equity $650,000;…

A: Solution:Sustainable growth rate means the constant rate at which the firm’s share price is…

Q: 6) Milestone Inc. Distributes 55% of its profits and uses the rest in the operations of the firm.…

A: Dividend Payout Ratio = 55% Retention Ratio = 1-Dividend Payout Ratio = 1-55% = 45% ROE = 22%…

Q: what is the Present Value of Growth Opportunities (PVGO) if the company reinvests 25% of its…

A: Present Value of Growth Opportunities (PVGO) is a concept that gives analysts a different approach…

Q: Am. 113.

A: Sales for the current year is $4,900,000Profit margin is 30%The retention ratio is 20%Expected sales…

Q: Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the…

A: The amount that is to be raised from outside sources such as availing loan, bank overdraft, issue of…

Q: Suppose a firm's profits increase 83 percent after sales change from $3.45 million to $4.85 million.…

A: Solution:Degree of operating leverage refers to the ratio of percentage change in firm’s profit to…

Q: The Indy Company experiences the following annual incomes over the last five years: $60,000,…

A: Step 1: Calculate Average EarningsThe earnings provided for the last five years are $60,000,…

Q: 15.EXCEL] Internal growth rate: Swan Supply Company has net income of $1,212,335, assets of…

A:

Q: Determine the percentage increase in annual operating income if Pharoah Corporation increases its…

A: operating profit is beneficial to knowing the decision-making process, controlling cost, increasing…

Q: A firms ROE is 30%, dividends are 3,000,000, net income is 25% of sales and sales is 27,000,000.…

A: Return on Equity= ROE = 30%Dividend = d = 3,000,000Net Income of Sales = 25%Sales = s = 27,000,000

Q: The Glexon mill has total assets of $91,600, current liabilities of $9,700, dividends paid of…

A: Particulars   Total Assets  (A) $ 91,600 Current liabilities (L) $ 9,700 Sales (S0) $ 38,400…

Q: 5. Eagle Products' EBIT is $680, its tax rate is 30%, depreciation is $42, capital expenditures are…

A: Free Cash FlowThe cash left over after a business has paid its operating costs and maintained its…

Q: After deciding the financial requirement, the finance manager should concentrate on…

A: After the financial manager has decided upon the financial requirement of the firm and its projects…

Q: If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the…

A: Profit = $375 billion Retained = $218 billion   Retention rate = ? Dividend payout rate = ?   After…

Q: What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million,…

A: Variables in the question:Times interest earned ratio=2Tax liability=$1 millionInterest…

Q: A firm's current market value of equity is $100 million. It has one million shares outstanding. The…

A: Current market price per share Current market price per share = Market value of equity / Number of…