How to calculate return on equity

Assignment Help Finance Basics
Reference no: EM133113768

Please show me how to calculate the following:

1. Return on Equity

2. Retention Ratio

3. Sustainable Growth Rate

4. Maximum Increase in Sales

Given:

Sales

53,500 

Current Assets

19,000 

Debt

43,000 

Costs

41,800 

Fixed Assets

72,000 

Equity

48,000 

Taxable Income

11,700 

Total

91,000 

Total

91,000 

Taxes

3,978 

 

 

 

 

Net Income

7,722 

 

 

 

 

 

 

 

 

 

 

Payout Ratio

30%

 

 

 

 

Tax Rate

21%

 

 

 

 

Reference no: EM133113768

Questions Cloud

Design of a truss bridge to carry a two-lane highway : Design of a truss bridge to carry a two-lane highway across the river valley - The bridge will comply with the structural provisions of the state specified
Currency with the lowest interest rate cost : Should the company borrow in the currency with the lowest interest rate cost? why not? Would your answer change if GBA did generate cash flows in the continenta
Determining the capital budgeting : 1. Among these tools (Payback, NPV, IRR, etc.), which one is quite useful and why.
Why collateral alone does not justify extending credit : Explain why collateral alone does not justify extending credit. Cite examples, using real estate or agricultural products as collateral
How to calculate return on equity : Please show me how to calculate the following: 1. Return on Equity 2. Retention Ratio 3. Sustainable Growth Rate
What is Dell Net Profit Margin : Question - Following is some financial information for Dell Inc. (in US$) What is Dell's Net Profit Margin for 2020
Baroda limited role and context scenario : You are a financial analyst in the capital projects department of Baroda Limited (BLD), which is a construction material and building products supplier with ope
What is roswell capital gain rate : Roswell Inc. is expected to pay an annual dividend of $0.66 per share in the coming year, and to trade for $9.25 at the end of the year. If investments with the
Prepare a schedule showing a horizontal analysis : Here is financial information for Glitter, Inc. Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year

Reviews

Write a Review

Finance Basics Questions & Answers

  Bond valuation-valuation a preferred stock

Michael Motors' bonds have 10 years remaining to maturity.  Interest is paid annually, the bonds have a $1000 par value and the coupon interest rate is 8 percent.  The bonds have a yield to maturity of 9 percent.  What is the current market price ..

  How many chinese yuan are required to purchase one us dollar

Purchasing-power parity) A McDonald's Big Mac costs 2.44 yuan in China but costs $4.20 in the United States. Assuming that purchasing-power parity (PPP).

  The december cbot treasury bond futures contract

The December CBOT Treasury bond futures contract is quoted at 92-19.  If annual interest rates go up by 1.50 percentage points, what is the gain or loss on the futures contract?  (Assume a $1,000 par value, and round to the nearest whole dollar.)

  Taking adequate amounts of vacation time

taking adequate amounts of vacation time

  What are two critical operating assumptions

What are two critical operating assumptions (identify one for profits, and one for capital) embedded in this forecast method?

  How would this affect the price of the stock

Now, suppose the Federal Reserve Board increases the money supply, causing a fall in the risk-free rate to 6% and rM to 13%. How would this affect the price of the stock? Round your answer to the nearest cent.

  Figure out present value of annuity payments

Can you please help me study and learn how to figure out present value of annuity payments. The example I am using is $1million lottery winnings

  What must total asset turnover be

A firm wishes to maintain an internal growth rate of 6.9 percent and a dividend payout ratio of 20 percent. The current profit margin is 5.3 percent.

  What is the firm after-tax cost of debt

The Carriage house issued 10-year, 8 percent semiannual bonds 3 years ago. The bonds currently sell at 99.5 percent of face value. What is the firm's after-tax cost of debt if the tax rate is 32 percent?

  Cases as independent of the other

2. If Amy Phillips is single and in the 28 percent tax bracket, calculate the tax associated with each of the following transactions. (Use IRS regulations for capital gains in effect 2001.) Treat each of the following cases as independent of t..

  Calculate duration and modified duration of bond

Company Y issues $1 million face value bond that matures in 3 years. The bond has a coupon rate of 10%. Coupon payment is made semiannually. The required rate of return is 8% (compounded semiannually). Calculate the duration and modified duration ..

  What is the monthly mortgage payment

The mortgage is for 30 years with equal monthly payment at a monthly interest rate of 3/4 percentage. What is the monthly mortgage payment?

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