What is the internal growth rate

Assignment Help Financial Management
Reference no: EM131448267

The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 63,600 Current assets $ 25,000 Debt $ 41,200 Costs 44,980 Fixed assets 77,900 Equity 61,700 Taxable income $ 18,620 Total $ 102,900 Total $ 102,900 Tax (35%) 6,517 Net Income $ 12,103 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 37 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?

Reference no: EM131448267

Questions Cloud

What is a capital market : What is a capital market? Are there different capital markets? How does a cost-efficient capital market help reduce the price of goods and services?
How long will it be before you have enough to buy the car : You're trying to save to buy a new $195,000 Ferrari. You have $45,000 today that can be invested at your bank. The bank pays 5.3 percent annual interest on its accounts. How long will it be before you have enough to buy the car?
What is the type of gain or loss on the sale transaction : Arthur owned 4, 200 shares of common stock of the Kyle Corporation common shares which he had purchased in 2008 for dollar 10 per share. In July of 2016, Kyle Corporation distributed non-taxable rights (one right for each share owned) to purchase add..
Make annual investments in fund : Suppose you make 30 annual investments in a fund that pays 3% compounded annually. If your first deposit is $5,500 and each successive deposit is 3% greater than the preceding deposit, how much will be in the fund immediately after the 30th deposit?
What is the internal growth rate : The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 63,600 Current assets $ 25,000 Debt $ 41,200 Costs 44,980 Fixed assets 77,900 Equity 61,700. The company maintains a constant 3..
Two old cash sayings-cash is king and cash is everything : There are two old cash sayings,"Cash is king" and "Cash is everything when you need it, but nothing when you have it" Describe your understanding of these statements in business, cross examine these two statements and then apply these concepts to rea..
Finances these assets entirely with common stock : Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 35%. CC will own no securities, so all of its income will be operating income. what is the difference between CC's expecte..
All fixtures-equipment-goods-accounts-general intangibles : When Friendly Bank loaned Bonnie Bizperson $50,000 for her business start-up loan, Bonnie Bizperson signed a note for repayment of the loan and signed a security agreement giving Friendly Bank a security interest in "all fixtures, equipment, goods, a..
What is the prepayment penalty : In 2010 a mortgage loan of $8,500,000 was issued by Associated Bank on a downtown office building. The terms of the loan were 10 years, 6.15% interest rate, interest only (no amortization). What is the prepayment penalty?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the firms sustainable growth rate

Plank's plants had net income of $10,000 on sales of $40,000 last year. the firm paid a dividend of $2,300. total assets were $ 700,000 of which $350,000 was financed by debt. what is the firm's sustainable growth rate? what would be the maximum poss..

  Which pollution control program should wilkes select

Wilkes, Inc., must invest in a pollution-control program in order to meet federal regulations to stay in business.- If the cost of capital for Wilkes is 15 percent, which pollution-control program should Wilkes select?

  Develop a specific recommendation

Develop a specific recommendation, with supporting rationale, as to whether or not Sprint's recent trend in financial and stock performance is of sufficient financial strength to warrant into entering into a long-term commitment.

  The remainder funded by common stock

Walker Corp. has a target capital structure of 27% long-term debt, 7% preferred stock, and the remainder funded by common stock. The yield on its 4% coupon bonds is 2.7%. The preferred stock is priced at $55 and pays $6.44 in dividends per share annu..

  What is the accumulated sum of the stream of payments

What is the accumulated sum of the following stream of payments? $1,506 every year at the end of the year for 13 years at 15.87 percent , compounded annually.

  What is the intrinsic value of firm of projected dividends

Whole Foods’ current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Whole Foods’ beta is 0.85. The current riskfree rate is 2.9%, and the expected return on the market portfolio is 7.4%. what is the intrinsi..

  Should the trailer be exempt from the bankruptcy estate

In 2008 Virgil Hurd was kicked out of his home by his ex-wife. At that time he moved into his horse trailer (the “Trailer”) to keep warm. The Trailer is twenty feet long and six feet wide. Virgil gets electricity for the Trailer from a socket and wat..

  Indexed funds can produce higher returns than managed funds

Studies have shown that indexed funds can produce higher returns than managed funds; this is evidence in support of:

  Before-tax component cost of debt

WC Inc. has a $10 million (face value), 10-year bond issue selling for 99 percent of par that pays an annual coupon of 9 percent. What would be WC's before-tax component cost of debt? Please show all work and formulas.

  Calculate values of countrys goods and services balance

Calculate the values of the country's goods and services balance, current account balance, and official settlements balance.

  What is the total payment each month for rick

Rick Rueta purchased a $74,000 home at 8.5% for 30 years with a down payment of $15,000. His annual real estate tax is $1,656 along with an annual insurance premium of $816. Rick’s bank requires that his monthly payment include an escrow deposit for ..

  Government was dictating policy actions to the bank of japan

Why might both the head of the Bank of Japan and the head of the Japanese government not want it to appear that the government was dictating policy actions to the Bank of Japan?

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