Maintain without resorting to additional equity issues

Assignment Help Financial Management
Reference no: EM131308829

An all-equity-financed firm plans to grow at an annual rate of at least 27%. Its return on equity is 42%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Maximum dividend payout ratio %

Reference no: EM131308829

Questions Cloud

Components of an annual hospital revenue budget : Calculate the following components of an annual Hospital revenue budget:
Calculate the patient volume needed per month : Technologist cost per test Variable cost per test The Center has 1 machine and 1 technologist $ 48 $ 27 As administrative director of the Laboratory you have been asked to see if it is feasible to add more staff to support Laboratory services. Calcul..
Maintain total revenue at the budgeted level : Operating Budget: Total revenues Total expenses Net Income Statistics Budget: 2012 Inpatient Discharges 65,625. Thirty days after presenting the budget, you learn that the revenue budget is overstated by $25 million due to significant payment reducti..
What is the firm sustainable growth rate : Plank’s Plants had net income of $16,000 on sales of $60,000 last year. The firm paid a dividend of $1,600. Total assets were $900,000, of which $450,000 was financed by debt. What is the firm’s sustainable growth rate? What would be the maximum poss..
Maintain without resorting to additional equity issues : An all-equity-financed firm plans to grow at an annual rate of at least 27%. Its return on equity is 42%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues?
Alternative substantive procedure : Assume you are working on a 12/31 year-end audit. It is now March 31 and the 12/31 accounts receivable aging shows a large receivable that was outstanding on 12/31 for 120 days. Further, the entity's receivables are typically collected in less than 4..
What is difference between planning and strategic thinking : How economic conditions affect goods and services which raise the prices in the foreign market. Explain the difference between the simple and compounding methods to calculate interest. What is the difference between planning and strategic thinking?
Find sustainable and internal growth rates for firm : Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 2.00; profit margin = 8%; payout ratio = 40%; equity/assets = .60.
Foundation with an annual cash donation : The Harsper Foundation was just notified that an anonymous benefactor gifted the Foundation with an annual cash donation. The Foundation will receive an initial amount of $25597, which will decrease by 3% per year. The Foundation will receive the cas..

Reviews

Write a Review

Financial Management Questions & Answers

  Federal aviation administration

Bola has accumulated $50,000 in her thrift savings plan at her job at the Federal Aviation Administration. The government puts in 1% of her pay and matches up to another 4% if she puts in 5% out of her pay. Bola earns $90,000 a year and plans to add ..

  What profit margin must the firm achieve

Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8.75 percent a year, a debt-equity ratio of .52, and a dividend payout ratio of 26.5 percent.- What profit margin must the firm achieve?

  What is the future rate of inflation assumed

If their combined life expectancy is 15 years at their retirement, can the Bruckners maintain their standard of living if they have the amount determined above and their funds earn 7 percent after they retire? What is the future rate of inflation ass..

  Decision will be based on return on investment of college

John is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the per year cost to attend Texas Tech including room and board is $24,044. He also assumes tuit..

  Free cash flow valuation model discounts free cash flows

The free cash flow valuation model discounts free cash flows by the required return on equity. The free cash flow valuation model can be used to find the value of a division. An important step in applying the free cash flow valuation model is forecas..

  Bond with call provision would generally be sold to yield

A bond with a call provision would generally be sold to yield

  Clean price of the bond

You purchase a bond with an invoice price of $1,048. The bond has a coupon rate of 5.7 percent, and there are four months to the next semi-annual coupon date. What is the clean price of the bond? (Do not round intermediate calculations and round your..

  Face value-before-tax component cost of debt

KatyDid Clothes has a $130 million (face value) 25-year bond issue selling for 104 percent of par that carries a coupon rate of 10 percent, paid semi annually. What would be Katydid’s before-tax component cost of debt?

  Excel spreadsheet detailing the cost of each scenario

Create an Excel spreadsheet detailing the cost of each scenario, and embed it into a Word document. Provide your recommendations in the Word document as well.

  Analysis of investment dear sir madam can you please

dear sir madam ltbrgt ltbrgtcan you please provide me the attached solution plagiarism free. looking forward to hear

  Describe circumstances under which sensitivity analysis

Describe the different mechanisms available to a firm to use to repurchase shares. Describe the circumstances under which sensitivity analysis might be a reasonable basis for determining changes to a firm’s EBIT or FCF.

  Thinking about using a break-even analysis

A manager at your company (Apple INC) is thinking about using a break-even analysis. Of what shortcomings should this manager be aware? The CFO of your company (Apple INC) states that the composite cost of capital is saucer-shaped or U-shaped. Explai..

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