Maintain a constant debt-equity ratio

Assignment Help Finance Basics
Reference no: EM133115919

A firm wishes to maintain a growth rate of 13.5% and a dividend payout ratio of 39%. The ratio of total assets to sales is constant at 0.70, and profit margin is 8.2%.

If the firm also wishes to maintain a constant debt-equity ratio, what must it be? (Do not round your intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM133115919

Questions Cloud

Different opinions on the tennessee and florida game : Two people have different opinions on the Tennessee and Florida game to be played tonight. One person supports Tennessee and is willing to offer 11 to 10 odds;
Establishing an employer-sponsored retirement plan : Jaylen would like to start maximizing retirement savings by establishing an employer-sponsored retirement plan for Troy Metals Inc. Additional objectives for th
Income tax consequence of sale and purchase strategy : What is the income tax consequence of their sale and purchase strategy?
Identifying the health of fetal using Cardiotocography data : Identifying the health of fetal using Cardiotocography (CTG) data - Feel free to take your project in any direction. However, make sure you can justify
Maintain a constant debt-equity ratio : A firm wishes to maintain a growth rate of 13.5% and a dividend payout ratio of 39%. The ratio of total assets to sales is constant at 0.70, and profit margin i
Prepare a communication for the employees : The Director of Finance, Tina Colin, has requested that you, as the Payroll Manager, prepare a communication for the employees
What is the bond price at issue : Pinder Co issues a 10-year 8.0% p.a. semi-annual coupon bond with a face value of $1,000. The effective annual bond yield is 5.0% at issue.
How many years would parker have had to wait : Based on an interest rate (discount rate) of 11.5% per year, how many years would Parker have had to wait to get the $10,000 value in the future
What has the history of economics told us : 1 a) What has the history of economics told us? b) What does that mean?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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