What profit margin must the firm achieve

Assignment Help Financial Management
Reference no: EM131546048

Abacus Co. wishes to maintain a growth rate of 9 percent a year, a debt–equity ratio of 0.5 and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1. 4 if firm plan to keep it’s finance the same What profit margin must the firm achieve?

Reference no: EM131546048

Questions Cloud

How does such trading differ from the forward market : Is it possible to trade foreign exchange in the futures market? How does such trading differ from the forward market?
Is micro credit the result of global divergence : What internal and external governance mechanisms are in place in Micro Credit? Is microcredit the result of global divergence?
Understanding terms enhance management performance : How will understanding these terms enhance management performance? Be specific in view of impact.
What most important elements of your code of conduct will be : Short essay to a page or less, and so you will have to think and choose carefully about what the most important elements of your Code of Conduct will be.
What profit margin must the firm achieve : The ratio of total assets to sales is constant at 1. 4 if firm plan to keep it’s finance the same What profit margin must the firm achieve?
Discuss the elements of maintainability : Discuss the significance of the information axiom as used in the axiomatic design methodology.
Calculate the net present value and irr of new machine : considering purchasing a replacement for an older machine that is being used in production. Calculate the Net Present Value and IRR of the new machine.
Local kawanis club on a topic titled : You are an expert in government programs. You have been asked to speak to the local Kawanis club on a topic titled, "Social Insurance in America."
Wisdom in adding additional hours : What economic analysis tool would be best for assessing the wisdom in adding additional hours and staff to a family practice clinc?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate its cost of common stock

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.50 per share, and the current price of its common stock is $50 per share. The expected growth rate is 8 p..

  What is the ratio of the market value of equity

A firm has current assets that could be sold for their book value of $36 million. The book value of its fixed assets is $75 million, but they could be sold for $105 million today. The firm has total debt with a book value of $55 million, but interest..

  What is company operating cash flow

During 2014, Raines Umbrella Corp. had sales of $780,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $85,000, and $115,000, respectively. What is Raines’s net income for 2014? What is the company..

  An important part of business is to plan ahead

An important part of business is to plan ahead. Identify three planning tools used for forecasting and the information each provides.

  Value of the common stock value to investor requiring

what would be the value of the common stock value to an investor requiring a 10% return?

  Stock portfolio invested-what is the portfolio beta

You own a stock portfolio invested 35 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .79, 1.17, 1.18, and 1.35, respectively. What is the portfolio beta?

  What is price per share of the company stock

You have looked at the current financial statements for Reigle Homes, Co. What is the price per share of the company's stock?

  Considering the buyout of an existing publicly traded

For this discussion, assume that you are an investor and considering the buyout of an existing publicly traded company. There are several areas you plan to focus on during your due diligence process in order to determine the organization's potential ..

  Interest is credited at an annual effective rate

The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an effective annual interest rate of 5%. The balance at the end of seven years is paid to the beneficiary in 120 equal monthly payments of X, with..

  Issued bonds at face value at a yield to maturity

Several years ago, Castles in the Sand, Inc., issued bonds at face value at a yield to maturity of 5.8%. Now, with 5 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased ..

  What are the major types of project risk

Why should companies use a project's net cash flows rather than its accounting income when determining a projects NPV? What are the major types of project risk? What three techniques are used to assess project's risk?

  Calculate average return of each stock-risk of each stock

Calculate average return of each stock and Calculate risk of each stock.

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