Maintains a constant debt-equity ratio

Assignment Help Financial Accounting

Reference no: EM131346141

Pizza Pie maintains a constant debt-equity ratio of .55. The firm had net income of $14,800 for the year and paid $12,000 in dividends. The firm has total assets of $248,000. What is the sustainable growth rate? 3.38 percent 2.27 percent 1.78 percent 3.62 percent 4.97 percent

Reference no: EM131346141

Questions Cloud

What is return shareholders are expecting : Paychex Inc. (PAYX) recently paid an $0.84 dividend. The dividend is expected to grow at a 15 percent rate. The current stock price is $53.31. What is the return shareholders are expecting?

Compute value of this stock with required return : A firm is expected to pay a dividend of $2.85 next year and $3.15 the following year. Financial analysts believe the stock will be at their price target of $110 in two years. Compute the value of this stock with a required return of 13.1 percent.

Prepare balance sheet-estimate of profitability ranges : William Murray achieved one of his life-long dreams by opening his own business, The Caddie Shack Driving Range, on May 1, 2017. He invested $19,650 of his own savings in the business. Murray is feeling pretty good about results for the first month, ..

Defined contribution plans for retirement : Many employers have shifted from defined benefit plans to defined contribution plans for retirement. What impact do you think that this shift has had on the retirement futures for many employees?

Maintains a constant debt-equity ratio : Pizza Pie maintains a constant debt-equity ratio of .55. The firm had net income of $14,800 for the year and paid $12,000 in dividends. The firm has total assets of $248,000. What is the sustainable growth rate? 3.38 percent 2.27 percent 1.78 percent..

Assuming use of cost flow assumptions : Adams Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $950 and the other, $1,250. Adams sold one of the items during the year. Based on this information, ..

How much money can this creditor expect to collect : A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data(assets are shown at the realizable values): This company owns $13,000 to an unsecured creditor (without pr..

Market price per share would make this par bond : On 1/1/15, the Larson Co. issues a $10,000 bond @103. The bond is convertible into 400 shares on Larson common stock. The fair market value of the shares on the issue date exceeds the face value of the bond. Following GAAP, what market price per shar..

Interested in free cash flow more than net income : Find K-Mart’s (1) accounts receivable (2) current liabilities (3) current assets, (4) total assets, (5) Return On Assets, (6) common equity, and (7) long-term debt. Suppose you were a potential investor, explain why would you be interested in free ca..

User Account

All Pages