What is the sustainable growth rate for the company

Assignment Help Financial Management

Reference no: EM131519073

You’ve collected the following information about Draiman, Inc.: Sales $ 200,000 Net income $ 14,000 Dividends $ 9,000 Total debt $ 80,000 Total equity $ 62,000 [1] What is the sustainable growth rate for the company? [2] If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt–equity ratio? [3] What growth rate could be supported with no outside financing at all?

Reference no: EM131519073

Questions Cloud

What is thiscounted payback period for these cash flows : What is the discounted payback period for these cash flows if the initial cost is $7,500?

Estimate the sunday seat turnover : Hamilton's Carvery restaurant has had a Sunday seat turnover of 5 while charging $40 per cover for its lunch to dinner ‘all you can eat roast' special.

Determine what prices to charge for its menu items : Bristol's Severn Bridge restaurant uses cost-plus pricing as an aid to determining what prices to charge for its menu items.

Identify the metrics for your organization : Identify the metrics for your organization and identify the metrics for the comparable organization.

What is the sustainable growth rate for the company : What growth rate could be supported with no outside financing at all? What is the sustainable growth rate for the company?

Determine a four-week advance reservation for a group : Quebec's BonVivant hotel has 200 rooms. It sets its room rates according to a policy of charging $120 per night to business clients and $90 per night.

Are there important dimensions that seem missing : Are there important dimensions that seem missing? Do you think that this model is cross-culturally applicable

National health planning resource and development : Select among any health care policies such as Hill-Burton, Medicare/caid, National Health Planning Resource and Development Act.

Discuss the ways the two concepts of locus of control : Discuss the ways the two concepts of locus of control and efficacy expectations could support each other and benefits this positive relationship could provide

User Account

All Pages