Given Sales : $250,000 NI : $40,000 Dividends: $10,000 Tot Debt: $100,000 Total Equity: $100,000 What growth rate can be supported without outside financing? A. 9.75% B. 18% C.11.75% D. 22% 28.13%

Q40 If the company’s Earnings before interest and taxes (EBIT) is OMR 500,000, the weighted average cost of capital is 12.5%, and the market value of the equity is OMR 1,000,000; then what is the value of Debt under Net Operating Income Approach? a. OMR 4,000,000 b. OMR 6,000,000 c. OMR 3,000,000 d. OMR 5,000,000

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50-If the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt is OMR 4,000,000; then what is the overall cost of capital of the firm under Net Income Approach? a. 8.33% b. 10% c. 12.5% d. 25%

rofit margin =   9.2 %   Capital intensity ratio =   .53     Debt-equity ratio =   .68     Net income = $ 103,000     Dividends = $ 52,000       Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

A firm retains earnings of $40,000. What is the total external financing needed if this company, with $120,00 O in assets, has projected a growth rate of 8 percent? Multiple Choice Zero $3,200 $30,400 $9,600 $100,00 0

YZ Goods target capital structure and other data follow: Long-term debt                                             $ 754,000,000 Preferred stock                                             40,000,000 Common equity                                            896,000,000 Total capital                                                   $1,690,000,000 Cost of Debt (kd) = 11% for amounts up to 80 M of additional Debt; will rise to 13% after that. Cost of Preferred = 10.5% at any amount T = 40%. P0 = $23. g= 8%, and it is expected to remain constant. Assume that the company expects to have total earnings of $137.8 million in 2020. Further, it has a target payout ratio of 45 percent, so it plans to pay out 45 percent of its earnings as dividends. Flotation cost of 5% is incurred for issuance of new shares. The following projects are available for investment: Project                        Cost (in Millions)                         Rate of Return A                                 $50…

Intro Nickelon's free cash flow during the current year is $150 million, which is expected to grow at a constant rate of 5% in the future. The weighted average cost of capital is 11%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals Submit

Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.8% 49 64 -$99,000 $46,000 Based on the above information, calculate the sustainable growth rate for Northern Lights Co. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.32.16) Sustainable growth a

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