Firm has decided that optimal capital structure

Assignment Help Operation Management
Reference no: EM131127688

A firm has decided that its optimal capital structure is 100% equity financed. It perceives its optimal dividend policy to be a 60% payout ratio. Asset turnover is sales/assets = .5, the profit margin is 12%, and the firm has a target growth rate of 3%. a-1. Calculate the sustainable growth rate. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Sustainable growth rate % a-2. Is the firm’s target growth rate consistent with its other goals? Yes No b. If not, what should the asset turnover be to achieve its goals? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Asset turnover c. Instead, what would the profit margin need to be to achieve its goals? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Profit margin %

Reference no: EM131127688

Questions Cloud

The unearned rent account balance on march 31 : Briefly explain the difference between adjusting entries and entries that would be made to correct errors.
Traditional waterfall project management approach : Imagine that you are a consultant just recently hired as a project manager for a software development project for a small, privately owned landscaping/nursery business. They currently use Excel spreadsheets to keep track of their inventory of plant s..
Describe two measures taken to protect wetlands in the us : Describe two (2) legislations that have been implemented to minimize the damage caused by oil spills. Describe two (2) measures taken to protect wetlands in the United States.
Journalize the entries to record the omitted adjustments : In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. Adjustment (a) is presented as anexample.
Firm has decided that optimal capital structure : A firm has decided that its optimal capital structure is 100% equity financed. It perceives its optimal dividend policy to be a 60% payout ratio. Asset turnover is sales/assets = .5, the profit margin is 12%, and the firm has a target growth rate of ..
Determine the cogs and ending inventory for year : Assuming a periodic inventory system and based upon the information above, please determine the COGS and Ending Inventory for year 2008 under the following inventory valuation methods: Weighted Average cost
What is the purpose and functions of presentence reports : What is the purpose and functions of presentence reports? Explain in detail. What is included in reports? Explain. Do you think they are valuable to the sentencing system? Why or why not?
The data needed to determine year end adjustments : Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trialbalance.
Discuss differences between terrorism and other criminal act : Discuss the differences between terrorism and other criminal acts. You are asked to provide an analysis of crimes associated with terrorism and how they differ from street crimes.

Reviews

Write a Review

Operation Management Questions & Answers

  Develop a payoff table for this situation

Develop a payoff table for this situation. What decision should you make using each strategy?

  Concept of how production processes are organized

Chapter Six discusses the concept of how production processes are organized. It lists six different approaches to organizing a process. Each has its own merits and best case uses. Each also has some limitations. How is your company's production proce..

  Using the sociotechnical systems theory

Describe the concept of HRD change in an organization using the Sociotechnical systems theory. Rationalize suitable interventions to address emotions of change.

  Effective organizational communication techniques

According to Shockley-Zalabak (2015), effective organizational communication techniques seek to do all of the following EXCEPT: promote sound decision making. Increase environmental uncertainty. bring order out of chaos. Enhance shared meaning among ..

  Why do you think jack agreed to process dan

In the Jack Cade Preventing the Nightmare educational video: Why do you think Jack agreed to process (hire) Dan? Was Jack correct in how he handled the situation? How would you have handled the directive from Donna? Why would you have handled it that..

  Advantages and disadvantages of the perfect size concept

What are the advantages and disadvantages of the Perfect Size concept for (a) Mars Belgium and Mars Netherlands, (b) the consumers, (c) the trade partners?

  What is costco safety stock for each brand of printer

At a local Costco, there are exactly 4 types of ink-jet printers. The weekly demand for printers is estimated to be normally distributed with mean 360. The 4 brands have equal market share on average at that Costco, and the standard deviation of d..

  Discuss how culture-communication and structure affect

Discuss how Culture, Communication, and Structure Affect the Success of a Business. Also explain how quality assurance and control systems help the business to add value to its products and services.

  Increased traffic and fierce competition

Increased traffic and fierce competition have forced X airlines to reexamine the efficiency and economy of its operations. As a part of a campaign to improve customer service in a cost-­effective manner, X has focused on passenger check-­in facilitie..

  Rule for scheduling if conditions are satisfied

We can use Johnson's rule for scheduling if following conditions are satisfied. A. There are only 2 machines. B. All jobs must spend some time at each of 2 machines. C. All jobs must first go Machine 1 and then on Machine 2. Which of the statement is..

  Which power bases lie within the individual

Which power bases lie within the individual? Which are derived from the organization? How are power and politics related?

  Major airline terminals crowded and chaotic at some times

Discuss: Major airline terminals crowded and chaotic at some times while nearly empty at others? Why is this and what can be done to relieve terminal and airport congestion?

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