BUSI530 Can someone please help me with these!! Im in the process of taking the test now I have an hour left! but I have no money to pay please! I still have more questions to answer!

leoeco

Main

Home >Homework Answsers >Business & Finance homework help

A firm’s profit margin is 16%, and its asset turnover ratio is 0.8. It has no debt, has net income of $40 per share, and pays dividends of $20 per share. What is the sustainable growth rate?

What is the Sustainable growth rate[removed] %

Here are the abbreviated financial statements for Planners Peanuts:

INCOME STATEMENT, 2012
Sales	$	8,000
Cost		6,300

Net income	$	1,700

BALANCE SHEET, YEAR-END
	2011		2012			2011		2012
Assets	$	4,500	$	5,000	Debt	$	853	$	1,000
					Equity		3,647		4,000

Total	$	4,500	$	5,000	Total	$	4,500	$	5,000

If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2013 of 25%, 30%, and 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

External
Financing

25%

$ [removed]

30%

[removed]

35%

[removed]

Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 1.50; profit margin = 6%; payout ratio = 40%; equity/assets = 0.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Sustainable growth rate

[removed] %

Internal growth rate

[removed] %

Plank’s Plants had net income of $5,000 on sales of $100,000 last year. The firm paid a dividend of $1,100. Total assets were $200,000, of which $100,000 was financed by debt.

a.	What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Sustainable growth rate

[removed] %

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

$ [removed]

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

Maximum growth rate

[removed] %