Suppose a firm pays total dividends of $696,000 out of net income of $2.4 million. What would the firm’s payout ratio be

Q: Provide Correct Solution please

A: Explanation:

Q: Suppose a firm pays total dividends of $35,000 out of net income of $200,000. What would the firm's…

A: Total dividends= $35,000 Net income= $200,000 Firm's payout ratio=?

Q: If a firm has an EV of $1,270 million and EBITDA of $388 million, what is its EV ratio? (Round your…

A: Enterprise Value(EV) Analysts frequently utilize enterprise value/financial metrics to swiftly…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be estimated with the help of dividend discount model

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.25, an interest burden of 0.7, and a…

A: The conceptual formula is represented mathematically:

Q: A firm has 260,000 shares outstanding, sales of RM1.94 million, net income of RM226,400, a…

A: Here, Outstanding Shares is 260,000 Sales is RM1,940,000 Net Income is RM226,400 Price Earning Ratio…

Q: A firm has EBIT of $30 million. It has debt of $100 million and the cost of debt is 7%. Its…

A: The value of unlevered firm can be calculated by using equation below.Unlevered firm value…

Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.4%, market capitalization of $11.52…

A: WACC = (Cost of equity x Weight of equity) + (Cost of debt x (1-tax rate) x Weight of debt)Weight of…

Q: Suppose a company has a days sales outstanding (DSO) that is considerably higher than itsindustry…

A: DSO tells about the days in which a firm will receive cash from its debtors for the sales made.

Q: Please help me for this question

A: To determine the firm's return on assets (ROA), we need to use the formula: ROA = Net Profit /Total…

Q: Company A's simple EPS is $1 and diluted EPS is $.50. Company B's simple EPS is $1.5 but his diluted…

A: EPS & Diluted EPS: These are used to measure the profitability of any company. EPS indicates how…

Q: A firm has a tax burden of 0.7. a leverage ratio of 1.3, an interest burden of .8, and a…

A: We need to use Du Pont method to calculate ROE. The equation isROE = Tax burden ratio*Interest…

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a…

A: The conceptual formula is represented mathematically:

Q: . A firm, its debt, and equity have β of 1.0, 0.5, and 3.0, respectively. What is the firm’s equity…

A: The question is based on the concept of firm (asset) beta calculation and equity ratio.

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $11,500…

A: Share price after declaration of dividend is the price which has been adjusted for the dividend…

Q: The target company has sales of $2 million, net income of $1 million, and cash flows to equity of…

A: We need to use P/E multiple valuation formula below for calculation of valuation P/E multiple…

Q: Suppose a firm pays total dividends of $456,000 out of net income of $1.9 million. What would the…

A: Calculation of payout ratio:Hence, the payout ratio is 0.24.

Q: A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion.…

A: Net income = $1 billion Sales = $20 billion Total assets = $10 billion Total invested capital =…

Q: You are given the following information: Stockholders' equity as reported on the firm's balance…

A: The share price, sometimes referred to as the stock price, is the amount needed to buy one share of…

Q: consider a company with ROE of 14.5% and a profit margin of 6.5%. if the total asset turnover is 1.8…

A: Debt equity ratio is a leverage ratio. It gives relative measure of debt to equity. Here Dupont…

Q: 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the…

A: Dividend yield refers to a ratio which shows the relationship between the annual dividend and…

Q: Viacom increased its dividend from $0.78 a share to $0.96 a share. What theory applies here and what…

A: Dividend: It is the part of the company’s profit that is distributed to the shareholders.

Q: A company paid P0.48 in cash dividends per share. Its earnings per share is P3.20 and its market…

A: Investors use book value of the share to find out the entities value for equity from which they will…

Q: Gardial & Son has an ROA of 12%, a 5% profit margin, and a return onequity equal to 20%. What is…

A: Given information: Company’s ROA is 12%, Profit margin is 5%, Return on equity (ROE) is 20%, Number…

Q: A firm has a cost of debt of 6.5 percent and a cost of equity of 10.1 percent. The debt–equity ratio…

A: Solution:Weighted Average Cost of Capital (WACC) means the average cost of capital for the firm…

Q: Assume that your firm has a return on assets of 14.7%, sales of $16,625,000, total assets of…

A: Here, Return on Assets14.70%Sales $ 1,66,25,000.00Total Assets $    47,50,000.00Return on…

Q: The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax…

A: Here in this case we are required to calculate interest covered ratio. We first need to understand…

Q: W As a consultant to Basso Inc., you have been provided with the following data: D, 50.67:…

A: To arrange the funds for the new investments or operations, firm offered various securities like…

Q: need the answer with explanation

A:

Q: Determine the PW of the following cash flows (CF) at 6% interest : @Year 0 = -14K , @ Year 1 = -8K,…

A: Interest rate = 6% Year Cash flow 0 -14000 1 -8000 2 13000 3 22000 4 -14000 5 -4000…

Q: Suppose Alcatel-Lucent has an equity cost of capital of 9.2%, market capitalization of $10.95…

A:

Q: constant, use the AFN equation to determine the firm's self-supporting growth rate-in other words,…

A: The maximum growth rate that an organization can accomplish without having recourse to outside money…

Q: A firm has sales of $4,790, costs of $2,590, interest paid of $174, and depreciation of $483. The…

A: Calculating the Earnings before Interest and taxes ( EBIT )Earnings before Interest and taxes…

Q: If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your…

A: Debt to Equity Ratio = de = 1.4

Q: You have the following data: D1 = $1.80; PO = $36.00; and g = 3.00% (constant).

A: Dividend discount model:The Dividend Discount Model (DDM) remains the dominant method in equity…

Q: A company hired you as a consultant to help estimate its cost of capital. You have obtained the…

A: The cost of equity can be calculated from the dividend discount model

Q: If Roten Rooters, Inc., has an equity multiplier of 1.27, total asset turnover of 1.20, and a profit…

A: As per the Dupont Analysis formulaReturn on Equity (ROE) = Profit margin x Total assets turnover x…

Q: If Roten Rooters, Inc., has an equity multiplier of 1.58, total asset turnover of 1.80, and a profit…

A: Equity multiplier = 1.58Total asset turnover = 1.80Profit margin = 6.8 %

Q: ABC Inc. has the following data. If it follows the residual dividend Capital budget % Deb Net income…

A: In a residual policy of dividend the first capital amount required is allocated and the remaining…

Q: A firm has a cost of debt of 6.2 percent and a cost of equity of 13.3 percent. The debt–equity ratio…

A: Cost of debt = 6.2% Cost of equity = 13.3% Debt-equity ratio = 0.96 Debt-asset ratio = Debt equity…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.