Calculate the rate at which firm can grow without changing

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Reference no: EM13976701

1. Calculate the rate at which a firm can grow without changing its leverage if its payout ratio is 75%, equity outstanding at the beginning of the year is $970,000, and its net income for the year is $157,000. (Do not round intermediate calculations.)

16.19%

12.14%

4.05%

13.05%

2. What is the WACC for a firm with 45% debt and 55% equity that pays 12% on its debt, 20% on its equity, and has a 40% tax rate? (Do not round intermediate calculations.)

14.24%

13.16%

16.40%

12.00%

Reference no: EM13976701

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