Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Assume that the following ratios are constant. Total asset turnover 1.37, profit margin 6.9%, equity multiplier 1.7, payout ratio 57%. What is the sustainable growth rate?
Assuming the following ratios are
constant, what is the sustainable
growth rate?
PLEASE INCLUDE EXCEL
FUNCTIONS.
Thank you!
Assuming the following ratios are constant, what is the sustainable growth rate?
Total asset turnover
Profit margin
Equity multiplier
Payout ratio
Plowback ratio
3.40
5.2%
Complete the following analysis. Do not hard code values in your calculations.
Return on equity
22.98%
Sustainable growth rate
1.30
35%
Assume the following ratios are constant.
Total asset turnover = 2.19
Profit margin
= 4.7%
= 1.66
Equity multiplier
Payout ratio
= 44%
What is the sustainable growth rate? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Sustainable growth rate
%
Chapter 3 Solutions
Corporate Finance
Ch. 3 - Financial Ratio Analysis A financial ratio by...Ch. 3 - Industry-Specific Ratios So-called same-store...Ch. 3 - Sales Forecast Why do you think most long-term...Ch. 3 - Sustainable Growth In the chapter, we used...Ch. 3 - EFN and Growth Rate Broslofski Co. maintains a...Ch. 3 - Common-Size Financials One tool of financial...Ch. 3 - Asset Utilization and EFN One of the implicit...Ch. 3 - Comparing ROE and ROA Both ROA and ROE measure...Ch. 3 - Ratio Analysis Consider the ratio EBITD/Assets....Ch. 3 - Return on Investment A ratio that is becoming more...
Ch. 3 - Use the following information to answer the next...Ch. 3 - Prob. 12CQCh. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - DuPont Identity If Muenster, Inc., has an equity...Ch. 3 - Equity Multiplier and Return on Equity Synovec...Ch. 3 - Prob. 3QAPCh. 3 - EFN The most recent financial statements for...Ch. 3 - Prob. 5QAPCh. 3 - Sustainable Growth If the Moran Corp. has an ROE...Ch. 3 - Prob. 7QAPCh. 3 - Prob. 8QAPCh. 3 - Prob. 9QAPCh. 3 - Prob. 10QAPCh. 3 - Prob. 11QAPCh. 3 - Prob. 12QAPCh. 3 - External Funds Needed The Optical Scam Company has...Ch. 3 - Days' Sales in Receivables A company has net...Ch. 3 - Prob. 15QAPCh. 3 - Prob. 16QAPCh. 3 - Prob. 17QAPCh. 3 - Prob. 19QAPCh. 3 - Prob. 20QAPCh. 3 - Calculating EFN The most recent financial...Ch. 3 - Prob. 22QAPCh. 3 - Prob. 23QAPCh. 3 - Prob. 26QAPCh. 3 - Prob. 27QAPCh. 3 - Prob. 28QAPCh. 3 - Prob. 29QAPCh. 3 - Prob. 30QAPCh. 3 - Calculate all of the ratios listed in the industry...Ch. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MC
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- Calculate the Terminal Value using the Perpetual growth Method Cost of Capital using WACC = 11.02% Terminal growth rate = 3%arrow_forwardHow would an increase in each of the following factors affect the AFN?1. Payout ratio2. Capital intensity ratio, A0*/S03. Profit margin4. Days sales outstanding, DSO5. Sales growth rateIs it possible for the AFN to be negative? If so, what would this indicate?If excess capacity exists, how would that affect the calculated AFN?arrow_forwardConsider the table given below to answer the following question. The long-run growth rate is projected at 5% and discount rate is 10%. Year Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 1 2 3 4 5 6 7 8 15.00 16.65 18.48 20.51 22.16 23.93 25.84 27.13 1.65 1.83 1.65 1.83 Present value 0.11 0.11 9 10 28.49 29.92 2.03 2.26 2.44 2.51 2.58 2.58 1.99 2.09 2.03 1.64 1.77 1.91 1.29 1.36 1.42 1.50 0.62 0.66 0.60 1.29 1.22 0.57 0.60 0.11 0.11 0.11 0.11 0.105 0.10 0.095 0.07 0.11 0.11 0.08 0.08 0.08 0.05 0.05 0.05 0.05 0.11 0.11 0.11 0.08 0.03 0.03 0.00 -0.23 0.05 0.07 Assuming that competition drives down profitability (on existing assets as well as new investment) to 10.5% in year 6, 10% in year 7, 9.5% in year 8, and 7% in year 9 and all later years. What is the value of the concatenator business? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) millionarrow_forward
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