Constant dividend payout ratio

Assignment Help Finance Basics
Reference no: EM133123841

Cross Town Express has sales of $137,000, net income of $14,000, total assets of $98,000, and total equity of $45,000. The ?rm paid $7,560 in dividends and maintains a constant dividend payout ratio. Currently, the ?rm is operating at full capacity. All costs and assets vary directly with sales. The ?rm does not want to obtain any additional external equity. At the sustainable rate of growth, how much new total debt must the ?rm acquire?

Reference no: EM133123841

Questions Cloud

Organizational process using qualitative research process : Evaluate an organizational process using a qualitative research process
Prepare the required adjusting entry : While a physical count of the supplies showed $300 of unused supplies on hand. Prepare the required adjusting entry
How does desire for a particular profession : 1. How does desire for a particular profession or trade compare to the highest paying available?
Determine the interest rate you will pay : Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual payments of $15,000 over 8 years
Constant dividend payout ratio : Cross Town Express has sales of $137,000, net income of $14,000, total assets of $98,000, and total equity of $45,000. The ?rm paid $7,560 in dividends and main
Calculate the npv of option : a. Should you lease or buy the car? Hint: calculate the NPV of each option.
Estimate the expected annual cash flows : Estimate the expected annual cash flows for the 25 years of the ship's useful life. Assume that Ocean Carriers is a U.S. firm subject to 35% taxation.
Determine cost of completed and transferred-out production : The beginning work in process inventory on July 1 had a cost of $3,040. Determine the cost of completed and transferred-out production
What is the standard deviation of a portfolio : Stock A's return has a variance of 0.0016. Stock B's return has a variance of 0.0036. What is the standard deviation of a portfolio

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd