What is maximum possible dividend payout rate firm

Assignment Help Financial Management
Reference no: EM131861381

An all-equity-financed firm plans to grow at an annual rate of at least 20%. Its return on equity is 32%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Reference no: EM131861381

Questions Cloud

Find the constant payout dividend : Find the constant growth dividend (10% growth rate). Find the constant payout dividend.
What is current value of the annuity : If the discount rate is 7 percent compounded monthly, what is the current value of the annuity?
Accounts does not belong in equity section of balance sheet : Which of the following accounts does not belong in the equity section of a balance sheet?
What is expected capital gains yield over next year for bond : Capital gains yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D?
What is maximum possible dividend payout rate firm : What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues?
What is exchange rate of polish zloty to british pound : What is the exchange rate (cross rate) of the Polish zloty to the British pound?
What are regular annuities : What are regular annuities? any real examples? How to compute the PV and FV of an ordinary annuity in Excel?
Compute the expected value of the return on the investment : Compute the expected value of the return on the investment. Assume the time period involved is short.
The break even index for customer loyalty : The Break Even Index (BEI) for a customer loyalty reward mailing done to customers of the Hair-esy Salon.

Reviews

Write a Review

Financial Management Questions & Answers

  Reject the project based on this index value

A project has cash flows of -$152,000, $60,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. What is the profitability index? Should you accept or reject the project based on this index value?

  Compute the firms price earnings ratio

Cisco Systems had net income of $4.401 billion and, at year end, 6.735 billion shares outstanding. In addition, the company’s EBITDA was $6.834 billion and its share price was $22.36. Compute the firm's price earnings ratio and the price-EBITDA ratio..

  Contemplating replacing current fleet of delivery vehicles

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans.

  Earley corporation issued perpetual preferred stock

Earley Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 10%, and its par value is $100. What is the stock's value? Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is i..

  Charges an annual interest rate

He charges an annual interest rate of 28.6 percent but requires you to make weekly payments and pay the loan off in full within one year.

  Analysts expect the dividend to grow at the rate

The Fast-Growth Company recently paid a dividend of $3.20 per share. Analysts expect the dividend to grow at the rate of 28% per year for 3 years, then by 16% for 3 more years, before converging to the industry median growth rate of 7%. what is the m..

  Spot exchange rate using the forward exchange rate market

Know why momentum seems to work when trying to forecast the future spot exchange rate using the forward exchange rate market. What is a banker's acceptance?

  You will need to calculate the futures price of the index

What action should the PM take? You will need to calculate the futures price of the index.

  Write about currency crisis

You need to write 20 pages with references about currency crisis

  What was the inflation rate for economy

Suppose that the price of beer rose by 6%, the price of pizza rose by 2.7% and the price of chocolate did not rise at all. Also, suppose that beer preresents 8 percent of the economy and pizza represent 31 percent. Chocolate is the rest of the econom..

  Calculate the total interest and fees casey one stop

Casey's One Stop has been approved for a $327, 500 loan commitment from its local bank. The bank has offered the following terms: term = one year, up-front fee = 90 basis points, back-end fee = 35 basis points, and rate on the loan = 9.50 percent. Ca..

  Compute current price of bonds-present yield to maturity

Compute the current price of the bonds if the present yield to maturity is

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