What is the sales growth rate

Assignment Help Finance Basics

Reference no: EM131959259

Question: The Company's financial statements for year 2525 show that year-end Total assets of $2,460 include Plant, property, & equipment (PP&E) of $2,100 . The assets are financed by Debt of $760 and Stockholders' equity of $1,700 . The annual Sales equal $11,800 , total costs equal $11,400 , Net income equals $400 , Dividends equal $230 , and New retained earnings equal $170 .

For 2526 the asset turnover (sales/total assets), net profit margin (=net income / sales), payout ratio (=dividends/net income) and price-to-earnings ratio (now 22.9) will be constant. The number of shares outstanding is 90. The firm seeks maximum growth by relying exclusively on retained earnings; external financing will be zero. What is the sales growth rate?

Reference no: EM131959259

Questions Cloud

Prepare sales and receivables journal : The business supplies a small range of women's surf-wear to surf shops and souvenir shops around Sydney. There are also a limited number of cash sales

What types of expense items could be a concern for company : A Company is trying to determine why their overall profit margin is low. Considering the information presented below, where within the multi-step income.

Gross sales to the markets organizers : How many pies will she need to sell to cover her fixed costs and realize a $10,000 profit? (input the number only and round up to the nearest pie)

What is the expected total costs for the worst case scenario : Orange believes that any of its forecasts including fixed costs could be high or low by as much as 6%. What is the expected total costs for the worst case

What is the sales growth rate : For 2526 the asset turnover (sales/total assets), net profit margin (=net income / sales), payout ratio (=dividends/net income) and price-to-earnings ratio.

What bid price per carton should you submit : If your tax rate is 34 percent and you require a return of 12 percent on your investment, what bid price per carton should you submit?

What is the value of the two bonds : A company has two bonds outstanding: Bond A has a maturity of 1 year and a face value of 3,000, bond B has the same maturity and a face value of 1,500.

Prepare a journal entry for the payment to giddings : Prepare a journal entry for the payment to Giddings - Prepare the general journal entry to pay the PAYG withheld on 20 July

Design networked systems including an application : Design networked systems including an application of the principles of bandwidth, user expectations, communications requirements, scalability and selection.

User Account

All Pages