Reference no: EM131070522
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,200 Current assets $3,401 Debt $6,801 Costs 2,112 Fixed assets 8,328 Equity 4,928 Taxable income $1,088 Total $11,729 Total $11,729 Taxes (33%) 359 Net income $729 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity financing is possible. Required: What is the internal growth rate? (Do not round your intermediate calculations.) rev: a)4.11% b)3.91% c)4.01% d)2.42% e)10.1%
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Dividend payout ratio-what is sustainable growth rate
: The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $11,000 Current assets $23,719 Debt $23,377 Costs 6,600 Fixed assets 16,598 Equity 16,940 Taxable income $4,400 Total $40,317 Total $40,317 Taxes (..
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What is the present value of the savings
: Your company will generate $67,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.75 percent, what is the present value of the savings?
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Chief advantage of factoring of recievables
: Which of the following is a chief advantage of factoring of recievables?
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Share repurchase proposal
: Share repurchase proposal: Currently, the firm has available capital (cash and net income) of approximately $5,000,000. There is a large block of stock available at $25 a share. If the firm decides to spend this amount of excess cash on a share repur..
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What is the internal growth rate
: The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,200 Current assets $3,401 Debt $6,801 Costs 2,112 Fixed assets 8,328 Equity 4,928 Taxable income $1,088 Total $11,729 Total $11,729 Taxes (33%) ..
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What is the aftertax salvage value of the asset
: An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,400,000 and will be sold for $1,880,000 at the end of the project. If the tax rate is 35 percent, what is ..
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Expansion project-depreciated straight-line to zero
: Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,280,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..
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Account immediately after you make last withdrawal
: Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $15,000 per year for 4 years, starting next year. How large must the deposit be? How much will be in the account immediately after y..
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What interest rate is the mortgage company charging
: Effective Rate of Interest A mortgage company offers to lend you $85,000; the loan calls for payments of $8,156.46 at the end of each year for 30 years. What interest rate is the mortgage company charging you? Round your answer to two decimal places.
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