Co. has net Income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total assets of $52,800, and total debt of $24,300. Assets, portional to sales. The company maintains a constant dividend payout ratio and debt-equity ratio and is operating at full capacity. What is the maximum sustained next year assuming no new equity is issued? Multiple Choice $2,151 $1,211 $2,804

Co. has net Income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total assets of $52,800, and total debt of $24,300. Assets, portional to sales. The company maintains a constant dividend payout ratio and debt-equity ratio and is operating at full capacity. What is the maximum sustained next year assuming no new equity is issued? Multiple Choice $2,151 $1,211 $2,804

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%
A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160,000 in net income $800,000 in equity (at the beginning of this prior year) $ 520,000 in current assets $480,000 in fixed assets $48,000 in accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30%. Calculate the AFN for this company assuming 80% retention ratio.
Question: Growth and Profit Margin - Dante Co. wishes to maintain a growth rate of 12 percent per year, a debt-equity ratio of .85, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .95. What profit margin must the firm achieve? Question: Sustainable Growth Rate - You have located the following information on Rock Company: debt ratio = 45%, capital intensity ratio = 2.45 times, profit margin = 18%, and dividend payout ratio = 35%. What is the sustainable growth rate for Rock?
A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160, 000 in net income $800, 000 in equity (at the beginning of this prior year) $520, 000 in current assets $480, 000 in fixed assets $48, 000 ir accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30 % . Calculate the AFN or this company assuming 80% retention ratio. a. $134,425 b. $127,650 c. $109,600 d. $76,950
White Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11 million with a 6% average interest rate. If the profit margin is 14 percent, the ROA is ______ %. Round it to two decimal places.
OnTheMove Inc. has profit margin of 9%, total asset turnover of 1.5, equity multiplier of 2 and a payout ratio of 35%. What is the firm's sustainable growth rate? a) 9.00% Ob) 9.45% c) 27.00% d) 21.29% e) 10.44%
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Red Company has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of $7,500,000, total assets of $22,500,000, and an interest cost on a total debt of 5 percent, what is the firm's return on total assets (ROA)? (Round answer to two decimal places.)
During the past five years, LMN had consistently paid 50% of earnings available to common shareholders as dividends. Next year, projected net income is at $6,000,000. Preferred shareholders receive $1,200,000 in dividends. The company maintains it's capital structure at 25.5% Debt; 15% Preferred stock; 60% common equity. What is the retained earnings break-point next year? Answer with solution $5,760,000 $4,800,000 $4,000,000 $6,000,000 None of the choices, write the answer
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Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 39 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey. Tomey Supply Company Income Statement and Balance Sheet. Income Statement Balance Sheet Revenues $1,768,121 Assets Costs 1,116,487 Current Assets $280,754 EBT 651,634 Net Fixed Assets 713,655 Taxes (35%) 228,072 Total assets $994,409 Net Income $423,562 Liabilities and Equity: Current Liabilities $167,326 Long-term…

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