+1-415-670-9189
info@expertsmind.com
What is sustainable growth rate for bad company, inc.
Course:- Finance Basics
Reference No.:- EM13298416





Assignment Help >> Finance Basics

I'm having problems with the second question in the problem. You've collected the following information about Bad Company, Inc. :

Sales = $ 170,000
Net Income = 16,000
Dividends = 11,500
Total Debt = 120,000
Total equity = 44,000

What is sustainable growth rate for Bad Company, Inc.? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio?

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
A firm has 10 million shares outstanding, with a $20 per share market price. The firm has $25 million in extra cash that it plans to use in a stock repurchase; the firm has
Project managers often say that their jobs consist of processing huge amounts of information, from supplier contacts through to customer delivery. What information is needed
The returns on XYZ Corp. over the last four years are 10%, 12%, 3%, and -9%. a. What is the historical average return over the last four years? b. What is the variance of the
Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 35 years. She has found a retirement fund that will earn 3% annual
while the payables deferral period would remain unchanged at 35 days. What effect would these policies have on the company's cash conversion cycle? Round to the nearest whol
A 1949 Vincent Black Shadow Series V motorcycle sold for about $45,000 in 1996. If you were fortunate enough to have bought one new for $630 in 1949,
Please describe the process you plan to use to conduct research, identify findings, and develop the Comprehensive Project due in Part 2 and present a brief outline indicatin
1. Discuss time value of money and its importance. Explain the relationship of discounting and compounding. Suppose you were considering depositing your savings in one o