What must total asset turnover be

Assignment Help Corporate Finance
Reference no: EM13304326

A firm wishes to maintain an internal growth rate of 9.75 percent and a dividend payout ratio of 43 percent. The current profit margin is 6.5 percent and the firm uses no external financing sources.

Required:
What must total asset turnover be? (Do not round intermediate calculations. Round your answer to 2 decimal places

Reference no: EM13304326

Questions Cloud

Financial-gains or losses and market trends : Reports are typically associated with data that is useful for meetings, shareholders and sometimes public information. Organizing the information to make it understandable is one factor to consider, however there are reports that are very tedious inf..
The project npv if the initial outlay is $21 million : A project can generate unlevered cash flow of $3 million per year in perpetuity. Suppose the firm considering this project finances its operations with an equal mix of debt and equit
What is the firm''s wacc if the corporate tax rate is 35% : A firm has 1,000,000 shares of stock outstanding, and each share is currently worth $22. The stock has a beta of 1.2. The firm also has 10-year bonds outstanding with a par value of $10,000,000
The profit will be different from the butterfly spread : If you create a butterfly spread using 3 put options, the profit will be different from the butterfly spread using 3 call options with the same strike prices
What must total asset turnover be : A firm wishes to maintain an internal growth rate of 9.75 percent and a dividend payout ratio of 43 percent. The current profit margin is 6.5 percent and the firm uses no external financing sources.
A warehouse close to the business district : You have decided to cash in on the dancing craze in your town, so you are thinking aboutsetting up a dance studio. You can rent a warehouse close to the business district for $40000 p.a.
How will this impact retained earnings : XYZ Company has a net loss of $100,000 for the year and pays dividends of $30,000 to its shareholders. How will this impact Retained Earnings?
Three decimal places.$ million : What does the NPV become if the tax rate falls to 35%? Round your answer to three decimal places.$ million
Preferred stock or common stock as an investmen twhy : Write a 500 - to 800-word paper explaining why preferred stock is referred to aspreferred and what some of the features added to preferred stock are that make it more attractive to investors. Would you select preferred stock or common stock as..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Discuss whether leah is performing in a professional manner

Occasionally, Leah's clients will call her at the office during regular office hours. -Discuss whether Leah is performing in a professional manner. -What would you do if you were Leah? -What would you do if you were Leah's supervisor and this came..

  How much would you pay for mcc

Assuming a required rate of return of 14 percent, how much would you pay for MCC on the basis of the earnings multiplier model? Discuss your answer.

  Finding additional financing

ICU has current assets of $800,000 and net fixed assets of $1,400,000. The company expects its sales to climb 25% next year from its current level of $3,500,000.

  Find standard deviation for each index

The following are monthly percentage (%) price changes for 4 market indexes. So calculate the average monthly rate of return for each index and Standard deviation for each index

  What is the daily labor expense for part-time employees

Develop a minimum cost schedule for the part-time employees and what is the daily labor expense for part-time employees?

  How would you expect this to affect the value of your bond

federal reserve - explain how would you expect this to affect the value of your bond

  What is the firms weighted average cost of capital

Use the comparative analysis below for S&J Plumbing, Inc. to determine if S&J Plumbing's return on assets is comparable to its competitors in the same industry.

  What was your total real return on investment

Suppose you decide to sell your bonds today, when the required return on the bonds is 11 percent. If the inflation rate was 3.4 percent over the past year, what was your total real return on investment?

  Behavioral implications of planning and control

Discuss additional behavioral implications of planning and control when a company's management employs an imposed budgetary approach and a participative budgetary approach.

  What is the value of the stock today

Simpkins Corporation is expanding rapidly, and it currently needs to retain all of its earnings; hence it does not pay any dividends.

  What is the amount of the initial outlay

What is the significance of the Australian Tax system for our company when it makes capital-budgeting decisions, what is the amount of the initial outlay and what is the relevant amount of profits and cash flows returned by the projects each year?

  How much additional funds will be required

Current assets and accounts payable vary directly with sales.  Sales are expected to grow by 20 percent next year, the expected net profit margin is 5 percent, and the dividend payout ratio is 80 percent.

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