What is the sustainable growth rate

Assignment Help Financial Management
Reference no: EM131317566

Pizza Pie maintains a constant debt-equity ratio of .55. The firm had net income of $14,800 for the year and paid $12,000 in dividends. The firm has total assets of $248,000. What is the sustainable growth rate?

Reference no: EM131317566

Questions Cloud

Calculate the after tax cost of overlapping interest : Calculate the dollar amount of interest that must be paid for each bond during the interest overlap period.- Calculate the after-tax cost of overlapping interest for each bond if the firm is in the 40 percent tax bracket.
Amount of private mortgage insurance : So what is the loan balance at the end of 10 years of scheduled payments? And what is the amount of private mortgage insurance added to each payment in the first year?
How did recession affect us trade relations and us dollar : How were GDP, inflation, and unemployment affected during the recession, and how does the model show this? How did the recession affect U.S. trade relations and the U.S. dollar exchange rate?
Income statement lists the income and expenses : Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $705,500, Interest expense = $51,000, and Taxes = $222,500. Bullseye's has no preferred stock outstanding and 250,000 shares of common stock outst..
What is the sustainable growth rate : Pizza Pie maintains a constant debt-equity ratio of .55. The firm had net income of $14,800 for the year and paid $12,000 in dividends. The firm has total assets of $248,000. What is the sustainable growth rate?
Find the currents crossing the following straight lines : What are the energy densities associated with the electric and magnetic fields?
Two stocks and one risk-free security : A portfolio has an expected return of 13.4 percent. This portfolio contains two stocks and one risk-free security. The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent
What is the coupon rate of the bond : The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond?
Calculate the after tax cost of the call premium : Calculate the tax savings that are expected from the unamortized portion or the old bonds' flotation cost.- Calculate the after-tax cost of the call premium that is required to retire the old bonds.

Reviews

Write a Review

Financial Management Questions & Answers

  NPV value obtained by discounting nominal cash flows

The NPV value obtained by discounting nominal cash flows using the nominal discount rate is the: I) same as the NPV value obtained by discounting real cash flows using the real discount rate II) same as the NPV value obtained by discounting real cash..

  Compute the book value per share

We know the following about Bob & Co. Total assets are $1000m, E is $700m, cash is $500m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 70% of the v..

  With all distributions in the form of dividends

Davis Inc. expects to have net income of $5,000,000 during the next year. Plato's target capital structure is 40% debt and 60% equity. The company has determined that the optimal capital budget for the coming year is $6,000,000. If Davis follows a re..

  When is standard capital budgeting project acceptable

When is a standard capital budgeting project acceptable? After GM filed for Chapter 11 bankruptcy, all of its common stocks had been removed from NYSE. Since then, there was no GM stock trading in any of the major stock exchange. The big event for GM..

  How much free cash flow did the firm generate

Hartzell Inc. had the following data for 2010, in millions: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2011 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] =..

  Long-term corporate bonds had an average return

Assume that long-term corporate bonds had an average return of 5.3 percent and a standard deviation of 9.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time?

  Benchmark price-sales ratio for the company

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,300,000 and there are 170,000 shares outstanding. If the benchmark price-sales ratio for the company is 4.4, how much will you pay for the stock? If the..

  Indicate the plus entry and the minus entry

Indicate the plus entry and the minus entry for the following transactions. - Country A exports $10,000 of goods to country I paid for by the importer by a check on his account with a bank in country A.

  Equal nominal annual payments

You take out a loan for $16101 that has equal nominal annual payments over the next five years. The real rate of return on the loan is 3.9%, and the annual inflation rate is 2.1%. What will the payments be?

  Actual implementation of their distribution policy

Which of the following help firms determine the actual implementation of their distribution policy? check all that apply?

  Invest only in the market portfolio yet have portfolio beta

How is it possible to invest only in the market portfolio yet have a portfolio beta of 1.5?

  The dividend yield and the capital gains yield

Suppose a stock had an initial price of $90 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $76. Compute the percentage total return. What was the dividend yield and the capital gains yield?

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