What is the internal growth rate-external equity financing

Assignment Help Financial Management
Reference no: EM131453739

The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,500 Current assets $3,720 Debt $7,438 Costs 2,310 Fixed assets 9,108 Equity 5,390 Taxable income $1,190 Total $12,828 Total $12,828 Taxes (33%) 393 Net income $797 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. No external equity financing is possible. Required: What is the internal growth rate? (Do not round your intermediate calculations.)

Reference no: EM131453739

Questions Cloud

Discusses various aspects of strategic planning : Discusses various aspects of strategic planning, including the mission and vision of the organization. What are the dangers of having a flawed mission statement?
Identify the type of product business : Identify the type of product business (manufacturing or retail/wholesale). Describe inputs,operations processes, and outputs.
Develop a pest analysis using the template : develop a PEST Analysis using the template below. Finally, Describe how you're going to grow this business in the global environment.
What is transformation in matrix : A sufficient condition to produce positively weighted efficient portfolios is that the variance-covariance matrix be diagonal: That is, that = 0, for i ? j.
What is the internal growth rate-external equity financing : The company maintains a constant 36 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?
Why has the organization been so successful : Why has the organization been so successful? What advice would you give to your organization bases on this case analysis? Include a Pest Analysis with summary.
Several models for developing a scorecard : Review Pershing pages 335-369. You will find that there are several models for developing a scorecard. Assess and analyze two of these formats.
What kind of advice would you give stewart : CIS5302 Professional Skills for Business Analysis Assignment - Exploring the General System Development Approaches - What is the best method for Edward to involve the brokers (users) in the development of the updated online trading system? Should he..
Compute the correlation coefficient : Consider the two random variables X and Y whose values are given below. Note that X and Y are perfectly correlated, though perhaps not linearly correlated.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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