External financing sources-what must total asset turnover

Assignment Help Financial Management

Reference no: EM131067146

A firm wishes to maintain an internal growth rate of 7.8 percent and a dividend payout ratio of 40 percent. The current profit margin is 6.2 percent, and the firm uses no external financing sources. What must total asset turnover be?

(Do not round intermediate calculations and round your final answer to 2 decimal places)

Reference no: EM131067146

Questions Cloud

What is the incremental savings of buying the valves : Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $900 Direct labor 600 Variable overhead 300 Fixed costs. the space o..

Calculate the present value of growth opportunities : You expect Seton Venture to have a ROE of 18%, a beta of 1.25, an expected earnings per share (E1) of $4.73, and a stable retention ratio (b) of 70%. Calculate the intrinsic value estimate of Seton Venture stock (V0) according to the constant growth ..

What is stock value when investor receives margin call : If an investor would like to sell short shares originally valued at $20,000 in which his/her cash contribution is $10,000, what is the stock value when the investor receives a margin call if the maintenance margin 30%?

Should your company replace its year-old machine : One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $170,000 today. The market value today of the current machine ..

External financing sources-what must total asset turnover : A firm wishes to maintain an internal growth rate of 7.8 percent and a dividend payout ratio of 40 percent. The current profit margin is 6.2 percent, and the firm uses no external financing sources. What must total asset turnover be?

Proxy beta is : A proxy beta is:

The system requirements in terms of users training : Discuss the system requirements in terms of users training and requirements, ICT support, implementation timeframe, maintenance and costing requirements (5 marks)

Before-tax component cost of debt : Oberon, Inc., has a $25 million (face value) 12-year bond issue selling for 98 percent of par that pays an annual coupon of 8.05 percent. What would be Oberon’s before-tax component cost of debt?

The new project is riskier than the firms existing projects : If the new project is riskier than the firm's existing projects, then it should be charged a higher cost of capital. If the new project is riskier than the firm's existing projects, then it should be charged a lower cost of capital. If the new projec..

User Account

All Pages