What growth rate could supported with no outside financing

Assignment Help Financial Management

Reference no: EM131025853

You’ve collected the following information about Odyssey, Inc.: Sales $ 205,000 Net income $ 14,200 Dividends $ 9,100 Total debt $ 82,000 Total equity $ 63,000 sustainable growth rate= .0880962789(8.81%)If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt–equity ratio? What growth rate could be supported with no outside financing at all?

Reference no: EM131025853

Questions Cloud

Energy-efficient grill-what are the operating cash flows : Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $49,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $12,250. What are the operating ca..

Develop spreadsheet model to calculate net present value : For a new product sales volume in the first year is estimated to be 80,000 units and is projected to grow at a rate of 4 % per year the selling price is 12 and will increase by 0.50 each year. per unit variable costs are 3 and annual fixed costs are ..

Do the partners split the first years profits : Sam and Teresa decide to go into business selling discounted merchandise through their web site "e-Buy". They sign a partnership agreement that requires Sam to contribute $12,000 and Teresa to contribute $8,000 in capital to start the firm.

Which of the sets of vectors in p2 are linearly dependent : Show that if {v1, v2, v3} is linearly dependent set of vectors in a vector space V, and v4 is any vector in V, then {v1, v2, v3, v4} is also linear dependent.

What growth rate could supported with no outside financing : You’ve collected the following information about Odyssey, Inc.: Sales $ 205,000 Net income $ 14,200 Dividends $ 9,100 Total debt $ 82,000 Total equity $ 63,000 sustainable growth rate= .0880962789(8.81%)If it does grow at this rate, how much new borr..

Time to maturity-calculate the price of this bond : Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 5 years Coupon rate: 8 percent Semiannual payments. Calculate the price of this bond if the YTM is:

Describe how you would hedge against interest rate risk : You wish to sell your $50 million 10-year bond in 6 months from today. Describe how you would hedge against interest rate risk using US treasury bond futures. Illustrate your answer if rates go up and when they go down.

What would be the amount of the lease liability : If lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year?

Define risk-elaborate on the different cases of beta : Define risk. Elaborate on the different cases of beta. Explain the 3 factors which would affect it.

User Account

All Pages