How much debt should a firm include

Assignment Help Finance Basics
Reference no: EM13283730

How much debt should a firm include in it's finances in order to obtain a sustainable growth rate of 25% while maintaining a 50% dividend payout, a 20% profit margin, and an asset turnover of 2.0?

Reference no: EM13283730

Questions Cloud

Determine the conduction interval in half cycle : An AC load circuit consists of a resistance of 30 Ω in sereiswith an inductance of 0.2 H. It is fed from a 120 V, 60 Hz AC source. determine the conduction interval in half cycle for a firing delay of 100 degree.
Explain what was the relative rate of reaction : A student studied the clock reaction described in this experiment. She set up Reaction Mixture 2 by mixing 20 mL of 0.010 M KI, 10 mL 0.001 M Na2S2O3, 10 mL 0.040 M KBrO3, and 10 mL 0.10 M HCl using the procedure given. It took about 45 seconds fo..
At what values of the dangle angle q does have components : A perfect electric dipole is directed along the z-axis. Inconventional spherical polar coordinates, at what values of the"dangle angle" q does the electric field have no z-component
What long position in the stock is necessary to hedge : What long position in the stock is necessary to hedge a short call option when the strike price is $32? Give the number of shares purchased as a percentage of the number of options that have been sold.
How much debt should a firm include : How much debt should a firm include in it's finances in order to obtain a sustainable growth rate of 25% while maintaining a 50% dividend payout, a 20% profit margin, and an asset turnover of 2.0?
What is the required asset turnover for a firm : What is the required asset turnover for a firm with a 10% profit margin, 75% equity and 60% dvidend payout that wishes to grow at 8% without increasing financial leverage?
Determine the value of external resistance required : An output pulse of 5μs duration is to be generated by a 74LS122 one-shot. Using a capacitor of 10,000 pF, determine the value of external resistance required.
Explain a white precipitate formed with barium chloride : A white precipitate formed with barium chloride, BaCl2: what is the chemical equation for the reaction of the reagent with the ion
What quarterly compounding apr must an account have : What quarterly compounding APR must an account have for a depositor to be indefferent between a 10% APR with monthly compounding and the account with quarterly compounding?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the after-tax cash flows for the company

Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $25,000, and that it has a 25 percent tax bracket. What are the after-tax cash flows for the company?

  What are some examples of nonconventional expenditures

What are some examples of nonconventional expenditures that must be considered in the modern public financial management and budgeting environment? Which are most difficult to address? Why? What strategies do agencies employ to deal with them?

  Calculate the bonds default risk premium

The security has no special covenants. Calculate the bond's default risk premium.

  What is the present value of these cash flows

What is the present value of these cash flows?

  What is nominal interest rate on a four-year u.s. government

The default premium is 1 percent. The maturity risk premium on four year bonds is 0.50%. What is the nominal interest rate on a four-year U.S. government bond?

  What can happen if this activity is not well established

Why is it important to monitor the cash flow of an organization? What can happen if this activity is not well established?

  How much of histhird payment goes toward repaying principal

A guy buys a car for $21,000 and finances it with a fiveyear, 7% APR with monthly payments and compounding. How much of histhird payment goes toward repaying principal?

  Devise and implement a cost allocation scheme

Suppose that $2 million of Financial Services are related to billing and managerial reporting and $1 million are related to payroll and personnel management activities.

  How much would that 22 year old bond sell for today

Assume that the Treasury sold a $100,000, 30 year bond exactly twenty two years ago. That bond carried a coupon rate of 10.5%. Also assume that today Treasury security maturing in the five to ten year period yield 2.0%. How much would that 22 year..

  What is the budget audit

What is the budget audit? Discuss its importance in the budgetary process.

  Conduct a break even analysis

Determine how do you conduct a break even analysis and can one be done with the following data, using the numerical computations break-even analysis?

  Find break-even quantity for the manual process

Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experien..

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