What profit margin must the firm achieve

Assignment Help Financial Management
Reference no: EM13977930

Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10.25 percent a year, a debt-equity ratio of .46, and a dividend payout ratio of 29.5 percent. The ratio of total assets to sales is constant at 1.29. Required: What profit margin must the firm achieve?

Reference no: EM13977930

Questions Cloud

Need for power relate to your work performance : In what way(s) do the need for achievement, the need for affiliation, and the need for power relate to your work performance? Your motivation? Which of the needs generally influence you the most? Describe a time in which that influence led to a negat..
Compute the current yield and the promised yield : Dave and Marlene Carter live in the Boston area, where Dave has a successful orthodontics practice. Dave and Marlene have built up a sizable investment portfolio and have always had a major potion of their investments in fixed-income securities. What..
Find the magnitude and direction of the net electric force : Three point charges are located at the corners of an equilateral triangle as in the figure below. Find the magnitude and direction of the net electric force on the 1.75 μC charge.
The standard deviation of monthly changes in the spot price : The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound) 1.5. The standard deviation of monthly changes in the futures price of live cattle for the closest contract is 1.2. The correlation between the futures..
What profit margin must the firm achieve : Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10.25 percent a year, a debt-equity ratio of .46, and a dividend payout ratio of 29.5 percent. The ratio of total assets to sales is constant at 1.29. Required: What profit margi..
Show the detailed mechanism for the formation of b from a : The treatment of acetal A with aqueous acid initially produces unstable compound B, which has a band in its IR spectrum at ~1730 cm-1. However, this compound is only stable at very low temperature. At room temperature, it reacts to form compound C..
Why freud theory is superior to adler theory : Write a 350-500 word synopsis showing why Freud's theory is superior to Adler's Theory. Please include at least 1 reference and use in-text citations
Contribute to plan every year to fund your retirement income : You have just turned 30. You must decide how much money to put into your retirement plan. You are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $70000 per year and will grow 1.8..
What constant amount will you be able to withdraw each year : You are 27, and decide to save $7500 each year (first deposit a year from now) in an account that pays 10% interest per year. You will make your last deposit 38 years from now when you retire at age 65. During retirement, you plan to withdraw funds f..

Reviews

Write a Review

Financial Management Questions & Answers

  How many years will it now take to double your balance

If you open a savings account that earns 8.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 7.5% interest compounded yearly. How many years will it now ..

  Fama-french three-factor model

An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 4%, the market return is 10%, the return on the SMB portfolio (rSMB) is 3.6%, and the return on the HML portfolio (rHML) is 5.4%. If ai = 0, b..

  Short-term funds transferred between financial institutions

Which of these money market instruments are short-term funds transferred between financial institutions, usually for no more than one day?

  Competitive bidding and long-term cost savings

"Competitive Bidding and Long-Term Cost Savings" Please respond to the following: From the e-Activity, take a position on whether competitive bidding provides long-term cost savings when Medicare patients are being limited to the use of the lowest bi..

  Provide any group life insurance

Maria has just graduated from college, is single, and has no dependents except for her dog, Albert. She has accepted a job with a starting salary of $40,000 and she has $10,000 in student loan debt. Her employer doesn't provide any group life insuran..

  Explain what does the market believe will be the stock price

The dividend is expected to grow at some constant rate g, the stock currently sells for $33 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e.,what is P^3)?

  Health care organizations capital projects analysis

Explain the Time Value of Money and give two examples of specific use/application in a health care organization's capital projects analysis, accounting for dollar value differences over time.

  Target capital structure

Patton Paints Corporation has a target capital structure of 40 percent debt and 60 percent common equity, with no preferred stock. Its before-tax cost of debt is 12 percent, and its marginal tax rate is 40 percent. The current stock price is P0 = $22..

  What is price of bond if its yield to maturity increases

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. What is the price of the bond if its yield to maturity increase..

  What is the amount of the firms average accounts receivable

Kay's House of Sound sells 520 musical instruments a year at an average price per instrument of $580. All sales are credit sales with terms of 2/10, net 25. Hogan's has found that 78 percent of its customers take advantage of the discounted price. Wh..

  The firms net income-total dollar returns to investors

Seattle Health Plans currently uses zero debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40 percent rate. It has $5 million in assets and because it is all-equity financed $5 million in equity. the firm's net income?..

  What is the cost of goods sold

What is the cost of goods sold?

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