Abbreviated financial statements for archimedes levers

Assignment Help Corporate Finance
Reference no: EM13488273

Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales increase by 14% in 2014 and all other items, including debt, increase correspondingly.

Income Statement
Sales $ 4,800
Costs, including interest 3,900

Net income $ 900

Balance Sheet, Year-end
2013 2012 2013 2012
Assets $ 3,936 $ 3,500 Debt $ 1,536 $ 1,433
Equity 2,400 2,067

Total $ 3,936 $ 3,500 Total $ 3,936 $ 3,500

a. If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Growth rate %

b. If the payout ratio is set at 50% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Growth rate %

Reference no: EM13488273

Questions Cloud

A nationwide distributor of furniture hardware : Knob, Inc., is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $241.20 million annually. First National, Knob's principal bank, offers to establish a new concentration banking s..
Obtain how is the image oriented relative to the object : A dentist's mirror is placed 3.1 cm from a tooth. The enlarged image is located 6.3 cm behind the mirror. How is the image oriented relative to the object
Explain pressure would nitrogen gas be most soluble : At which pressure would nitrogen gas be most soluble. 1.0 atm, 1.5 atm , 2.0 atm or d.25atm
Determine the amount of revenue : Determine the amount of gross profit or loss to be recognized in each of the three years using percentage of completion method.
Abbreviated financial statements for archimedes levers : Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales increase by 14% in 2014 and all other items, including debt, increase correspondingly.
Explain tert-butyl bromide or tert-butyl chloride : Which alkyl halide reacted fastest with silver nitrate in ethanol: tert-butyl bromide or tert-butyl chloride. Explain how the nature of the leaving group affects the rate in the SN1 reaction.
Calculate the total number of fission events : If the average energy released in a fission event is 208 MeV, calculate the total number of fission events required to operate a 140 W lightbulb for 6.00 hr
United states model income tax convention : How does the United States tax Ericas activities and how would your answer change if Erica were a self-employed technician rather than an employee?
Explain increase pressure or increase temperature : Which would most likely increase the solubility of a solid in water ? stirring, increase the surface area of solid, increase pressure or increase temperature

Reviews

Write a Review

Corporate Finance Questions & Answers

  Suppose you manage the local scoopys ice cream parlor in

suppose you manage the local scoopys ice cream parlor. in addition to selling ice-cream cones you make large batches of

  Determine the present value of streams

Determine the present value of streams shown in the table if opportunity cost is 12 percent.

  Multiple choice questions on time value of money

Multiple choice questions on time value of money - What's the future value of $2000 after three years if the appropriate interest rate is 8%, compounded semiannually?

  Nominal interest rates are expected to stay

You expect inflation to be 3% per year for the next 20 years, and nominal interest rates are expected to stay around 8% per year

  Ranbaxy laboratories ltd is a leading indian corporation in

ranbaxy laboratories ltd. is a leading indian corporation in the pharmaceutical industry. you were provided in the

  Explain the limitations of using a break-even point

What is the role provided by a break-even point and how would you calculate this point? and also explain the limitations of using a break-even point and how would you incorporate this point with management strategic planning?

  Capm and valuation of the company to be purchased

CAPM and Valuation of the company to be purchased -  What is the expected rate of return for BigCo and What discount rate should BigCo use to evaluate ChemCo and why?

  What price would you bid

Assume that the relevant tax rate is 34 percent. If the no lift security company requires 10 % return on its investments what price would you bid?

  Evaluate the payback period and npv

You are considering a project that will require an initial outlay of $54,200 - Evaluate the payback period, NPV, PI, and IRR.

  General battery company gbc is formulating plans to open

general battery company gbc is formulating plans to open battery exchange centers throughout the u.s. where

  Calculation of adjusted return on assets and after tax cost

calculation of adjusted return on assets and after tax cost of debtall questions relate to the kimberly-clark corp.

  Calculating expected return and standard deviation

You are planning the three securities listed below. Determine the expected return for each security and also find the standard deviation of returns for each security.

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