How much money the firm can afford to payout

Reference no: EM13302219

MC Frasier Cabinets wants to maintain a growth ...

Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .0.55, a total asset turnover ratio of 1.30, and a profit margin of 9.0 percent. What must the dividend payout ratio be? HINT: Determine if the target growth rate is IGR/SGR. Next, use the formula to determine how much money (%) the firm can afford to payout to stockholders. You will also want to review the DuPont identity.

A. 26.26 percent
B. 38.87 percent
C. 49.29 percent
D. 61.13 percent
E. 73.74 percent

Reference no: EM13302219

Questions Cloud

Find contact time would be reuired for inactivating giardia : How much contact time would be reuired for inactivating Giardia cysts using the following chemicals at the concentrations and temperatures stated: a. Chlorine Dioxide, 23C, 1.0 mg/L b. Chlorine, 12C, 1.6 mg/L c. Ozone, 10C, 5 mg/L d. Chloramines, ..

How many units were transferred out to department 2 : How many units were transferred out to Department 2?

Explain what is the theoretical yield of acetaminophen : If 0.130 g of p-aminophenol is allowed to react with excess acetic anhydride, what is the theoretical yield of acetaminophen in moles. In grams

Determine what is the pm concentration in ug per dscm : A stack (T=550 F and P=750 mmHg) was sampled using EPA Method 5. The total gas volume that flowed through the dry gas meter was 2.785 cubic meters (at T=60 F and P=800 mmHg).The mass of particles collected was 1.50 g.

How much money the firm can afford to payout : Next, use the formula to determine how much money (%) the firm can afford to payout to stockholders. You will also want to review the DuPont identity.

Explain use a minimum amount of water to rinse the conical : Why should you use a minimum amount of water to rinse the conical vial while transferring the purified acetaminoophen to the Hirsch funnel

Briefly describe the content of the reference : Briefly describe the content of the reference and how it relates to your course project. Anonymous authors or web pages are not acceptable. At least three of those sources used should be from academic journals and/or professional publications...

Derive mathematical relation describing calibration curves : An orifice meter was calibrated for dry air at T=90 F and P=1.3 atm. The calibration data are as follow: dp(inches of water): 0,0.5,1.0,2.0,3.0,4.0,5.0 Q(ft^3/minute): 0,2.0,3.0,4.2,5.0,5.5,5.8

What is the cross-rate of swiss francs to euros : Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.64 euros. What is the cross-rate of Swiss francs to euros?

User Account

All Pages