Determine what the dividend payout ratio must be

Assignment Help Finance Basics
Reference no: EM131132307

Nearside, Inc. wishes to maintain a growth rate of 12% per year and a debt-equity ratio of .30. Profit margin is 6.7%, and the ratio of total assets to sales is constant at 1.35. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?

Reference no: EM131132307

Questions Cloud

What is her recognized gain and adjusted basis for the real : She receives real estate with a fair market value of $72,000 and Todd assumes the mortgage. What is her recognized gain and adjusted basis for the real estate received?
Resources to balance both education and business : What are the resources that an institution can make available for entrepreneurship students to balance both education and business?
What unlikely ally financed the spartans : What unlikely ally financed the Spartans in their final and fatal blow to Athens at the end of the Peloponnesian War
Why might this legislation increase aggregate surplus : Why might this legislation increase aggregate surplus? Why might it lower it?
Determine what the dividend payout ratio must be : Nearside, Inc. wishes to maintain a growth rate of 12% per year and a debt-equity ratio of .30. Profit margin is 6.7%, and the ratio of total assets to sales is constant at 1.35. Is this growth rate possible? To answer, determine what the dividend pa..
How many firms will enter the market : Consider the setting of in-text exercise 19.1 (page 714). If the fixed costs associated with being active in this market are $30,000 per year, how many firms will enter the market?
What are the new equilibrium quantities and market price : Suppose Joe, Louie, and Rebecca compete in the Bertrand ready-mix concrete market described in Section 19.2. Show that in any Nash equilibrium, all sales must occur at a price of $40 (equal to marginal cost). Extend your argument to show that this..
What is the p-value required to reject the null hypothesis : A long-distance telephone company claims that the mean duration of long-distance telephone calls originating in one town was greater than 9.4 minutes, which is the average for the state. Determine the conclusion of the hypothesis test assuming tha..
Differentiate an enterpreneur and gm of restaurant : In what ways is an entrepreneur who just launched a restraunt diffrents from someone who just took a job as a general manager of a restraunt.

Reviews

Write a Review

Finance Basics Questions & Answers

  The debt coupon is 8 and tax rate is 40 while the current

company x is considering changing its capital structure in light of the tough business environment. currently company

  Calculate the net present value-payback

Using a 5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each year). Based on your calculations rank the projects and support you answer.

  Income statement for sandifer manufacturing

Working with the income statement At the end of its third year of operations the Sandifer Manufacturing Co, had $4,530,000 in revenue $ 3,342,000 in cost of goods sold $451,000 in operating expenses which included depreciation expense of $143,000 ..

  As is often the case the marketing department has

1.your supervisor vic gonzales has asked you to prepare a capital budgeting report indicating whether isgc should

  Determine the estimated risk premium

Please list any three components or any yield or return on investment. Determine the estimated risk premium of a certificate of deposit that matures in ten years and has a yield or return of 14%?

  Which strategy works best if a bidding war erupts

If you were Smith's financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

  Describe how you made decision to pursue the education in

develop a three- to four-page analysis excluding the title and reference pages on the projected return on investment

  Lewis schultz and nobel development corp has an after-tax

lewis schultz and nobel development corp. has an after-tax cost of debt of 6.3 percent. with a tax rate of 30 percent

  Underwriting costs

What is the spread on this issue in percentage terms? What are the total expenses of the issue as a percentage of total value(at retail)?

  How changes to the project scope-timeline

How changes to the project scope, timeline, and budget are managed and reported. How project cost and schedule performance is measured and reported

  What are the main differences between credit analysis and

what are the main differences between credit analysis and equity analysis? how do these impact the financial statement

  Demonstrate selected perceptions

Students will choose a company of their liking and use any of the 2 (qualitative or quantitative) research and analysis methods to demonstrate selected perceptions (approved by the faculty) of the company. This project requires you to research, re..

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