User Account

All Pages

What is the firm sustainable growth rate

Assignment Help Finance Basics
Reference no: EM132500791

Plank's Plants had net income of $3,000 on sales of $60,000 last year. The firm paid a dividend of $1,800. Total assets were $100,000, of which $40,000 was financed by debt.

a. What is the firm's sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Sustainable growth rate ______________________%

b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)

New debt__________________________

c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Maximum growth rate _____________________%

Reference no: EM132500791

Questions Cloud

Define what are your strengths and weaknesses : When it comes to facilitating spiritual care for patients with worldviews different from your own, what are your strengths and weaknesses?
What is the probability of default for the new customer : What is the probability of default for the new customer would make the firm break even when granting credit?
What is mary effective annual rate : She sold all stocks today for $44.35. During that period the stock paid dividends of $2.84 per share. What is Mary's effective annual rate?
Which trends in variances may not indicate inherent problem : Which trends in variances may NOT indicate inherent problem? Marketing personnel overstating costs to give themselves additional flexibility
What is the firm sustainable growth rate : Plank's Plants had net income of $3,000 on sales of $60,000 last year. The firm paid a dividend of $1,800. Total assets were $100,000, of which $40,000
What is your definition of spiritual care : What is your definition of spiritual care? How does it differ or accord with the description given in the topic readings? Explain. The response must be typed.
What is the implicit effective annual interest rate : What is the implicit effective annual interest rate on this factoring arrangement? You also learn that Empire Corp has just been told by Chewbacca
Determine the amount of supplies used : Determine the amount of supplies used and journalize the adjusting entry. Restaurant had $8,480 supplies on hand at the beginning of April.
What is the maximum possible dividend payout rate : An all-equity-financed firm plans to grow at an annual rate of at least 21%. Its return on equity is 33%. What is the maximum possible dividend payout rate

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd