Internal growth rate and sustainable growth rate

Assignment Help Financial Management

Reference no: EM13722240

Internal Growth Rate: 3.9%

Sustainable Growth Rate: 15.13%

WACC: 10.57%

Consider the results. If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.

Reference no: EM13722240

Questions Cloud

Write a presentation about gm : Write a presentation about GM (Genaral Motors)

What must the coupon rate be on mertons bonds : Merton Enterprises has bonds on the market making annual payments, with 12 years to maturity, and selling for $963. At this price, the bonds yield 7.5 percent. What must the coupon rate be on Merton’s bonds?

Coupon bonds on the market with nine years left to maturity : The Timberlake-Jackson Wardrobe Co. has 7 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,038.50, what is its YTM?

What is the current bond price : Lycan, Inc., has 6 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8 percent, what is the current bond price?

Internal growth rate and sustainable growth rate : Consider the results. If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.

What is futons abnormal rate of return : Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.58 and an alpha of –0.33% per month. A month later, the market is up by 6.3%, and United Futon is up by 7.3%. What is Futon’s abnormal rate of return?

Discuss the company''s corporate strategy : Discuss the company's corporate strategy and explain what business the organization is in or wants to be in. Describe your growth objectives for this organization.

Accounts receivable turnover and inventory turnover : Jim Short's Company makes clothing for schools. Sales in 2013 were $4,820,000. Assets were as follows: Cash ($163,000), Accounts receivables ($889,000) Inventory ($411,000) Net equipment ($520,000) Total assets ($1,983,000):

Create a draft of your written proposal : You will utilize the Written Proposal template to create your Written Proposal draft. Enter the requested information on the title page where indicated.

User Account

All Pages