Braintree Corporation has $5 billion in assets, $4 billion in equity, and earned a profit of $100 million last year as the economy boomed. Senior management proposes paying themselves a large cash bonus in recognition of their performance. As a member of Braintree's board of directors, how would you respond to this proposal?

Barb is asked to analyze a new software firm. This year the firm has total revenues of $110 million and expenses (excluding interest payments) of $50 million. The firm has $90 million of capital, of which $30 million is in debt financed at an 8% annual interest rate and the rest is equity. Barb estimates that the cost of equity capital here is 15%. Barb determines this firm has accounting profi of [Select] [Select] economic profit of [Select] a good use of capital. く and

We are going to explore the differences between two different companies, both from the same sector, firms A and B. They differ in their reinvestment abilities. Firm A and Firm B are both financed with equity only. At the end of their business year, both firms report $1,000m in revenue. The net income is $200m for both firms. Assume that management is able to maintain a constant net profit margin of 20%. • Firm A is capable of achieving 8% revenue growth annually by investing 27% of their net income. . Firm B is capable of achieving 8% revenue growth annually by investing 40% of their net income. Assume that this difference persists into the future. a) Find the value of firms A and B. Use a discount rate of 16% for both firms. Value of firm A in millions: Value of firm B in millions: b) The forward P/E ratio of a company is the price of a share divided by next year's earnings per share, or its value divided by next year's earnings. What is the forward P/E ratio of firms A and B? P/E…

need help with this question

In the following scenario you are the CEO of a corporation (please answer A, B & C) Your company consists of 500 employees and recorded a net profit in 2021 of $9M. You notice your call center (75 employees) seems to be taking up a substantial amount of expense, as it accounted for $3M. You have the option to outsource the call center, costing the 75 employee's their jobs, but saving you $2.5M a year in expense. What do you do; keep the 75 employees at the current salary or outsource the department to save $2.5M annually? Why did you pick what you did? Same question as above, except your 2021 net profit was $1M. Do you outsource to shed $2.5M in expense? Why or why not? Were your answers to A & B the same or different? Did your answers contradict which group you picked in your initial post?

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.   Year Net Income Profitable CapitalExpenditure 1 $ 11 million $ 8 million 2   24 million   11 million 3   9 million   7 million 4   19 million   7 million 5   23 million   8 million     The Hastings Corporation has 2 million shares outstanding. (The following questions are separate from each other).   If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.)   If the firm simply uses a payout ratio of 40 percent of net income, how much in total cash dividends will be paid? (Enter your answer in millions and round your answer to 1…

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Profitable Capital Expenditure Year 1 Net Income $11 million $ 8 million 2 24 million 3 9 million 11 million 7 million 4 19 million 7 million 5 23 million 8 million The Hastings Corporation has 2 million shares outstanding (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.) Total cash dividends million b. If the firm simply uses a payout ratio of 40 percent of net income, how much in total cash dividends will be paid? (Enter your answer in millions and round your answer to 1 decimal place.) Total cash dividends million

Assume that a company earns $280,000 in profit for the year on $3 million in revenue. The board of directors decides to keep half to pay for dividends and to reinvest the rest in the company. Sixty percent of the retained earnings are invested in non- current assets and the rest, in working capital for growth. Questions bombonima 1. Calculate, as a percentage of revenue, how much would be kept in the in ples company for growth (i.e., working capital and non-current assets) and ToodT TOShow much would be used to pay dividends. 2. Explain who is responsible for deciding how much to retain in the business and how much to pay in dividends. 3. What do you think the board of directors would do if the profit for the year increased to $350,000?

Need help

Last year Rosenberg Corp. had $195, 000 of assets, S18,775 of net income, and a debt-to-total-assets ratio of 32%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE? Question 5 options: 4.36% 4.57% 4.80% 5.04%