Profit margin =   8.5 %   Capital intensity ratio =   .46     Debt-equity ratio =   .61     Net income = $ 96,000     Dividends = $ 41,500       Based on the above information, calculate the sustainable growth rate for Northern Lights Co

Charles Jones is evaluating Reliant Home Furnishings by using a three-stage growth model. He has accumulated the following information: ·        Current FCFF $745 million ·        Outstanding shares 309.39 million ·        Equity beta 0.90, ·        risk-free rate 5.04 percent; ·        equity risk premium 5.5 percent ·        Cost of debt 7.1 percent ·        Marginal tax rate 34 percent ·        Capital structure 20 percent debt, 80 percent equity ·        Long-term debt $1.518 billion ·        Growth rate of FCFF -        8.8 percent annually in stage 1, years 1–4 -        7.4 percent in year 5, -        6.0 percent in year 6, -        4.6 percent in year 7 -        3.2 percent in year 8 and thereafter From the information that Jones has accumulated, estimate the following: b)     WACC.  c)     Total value of the fi rm.

7. In future periods, YZX Inc. is expected to maintain a dividend payout 40%, a net profit margin of 4.6%, a total asset turnover of 2.2, and an equity multiplier of 1.35. What is YZX's projected sustainable growth rate? 5.46% 8.20% 8.55% 9.00%

Use the information below to calculate WACC given the Market Capitalization of       the company:               Market Cap = 193.2 Million     EBIT = 17.2 Million             Depreciation = 4.2 Million       Capital Expenditures = - 3.8 Million   Change in W/C = 2.1 Million      growth = 7%          FCF = ?                             WACC = ?