Gilmore, Inc., had equity of $190,000 at the beginning of the year. At the end of...

Gilmore, Inc., had equity of $190,000 at the beginning of the year. At the end of the year, the company had total assets of $345,000. During the year, the company sold no new equity. Net income for the year was $40,000 and dividends were $5,600.

a.	Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	Calculate the internal growth rate using ROA × b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c.	Calculate the internal growth rate using ROA × b for end of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Gilmore, Inc., had equity of $155,000 at the beginning of the year. At the end of...

Gilmore, Inc., had equity of $155,000 at the beginning of the year. At the end of the year, the company had total assets of $310,000. During the year, the company sold no new equity. Net income for the year was $33,000 and dividends were $4,200. a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the sustainable growth...

gilmore inc, had equity of $145,000 at the beginning of the year. at the end of...

gilmore inc, had equity of $145,000 at the beginning of the year. at the end of the year the company had total assets of $300,000. During the year the company sold no new equity. Net income for the year was $31,000 and dividends were $3,800. a. calculate the internal growth for the company. b. calculate the internal growth rate using ROA x b for the beginning of the period total assets. c. calculate the internal growth rate using ROA x...

Sourstone, Inc., had total assets of $299,000 and equity of $190,000 at the beginning of the...

Sourstone, Inc., had total assets of $299,000 and equity of $190,000 at the beginning of the year. At the end of the year, the company had total assets of $324,000. During the year, the company sold no new equity. Net income for the year was $104,000 and dividends were $50,000. What is the sustainable growth rate if you calculate ROE based on the end-of-period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to...

A corporation had the following assets and liabilities at the beginning and end of this year....

A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 133,000 $ 57,017 End of the year 182,500 73,913 Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business, but dividends were $700 cash per month. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for...

Boisvert ltée had the following inventories at the beginning and at the end of the year:...

Boisvert ltée had the following inventories at the beginning and at the end of the year: 1 JANUARY 31 DECEMBER ¬ Raw materials (of which 20% were supplies) 10 000 $ 12 000 $ Current products 20 000 $ 17 000 $ Finished products 30 000 $* ?? * The stock of finished products on January 1 was 7,500 units * The stock of finished products on January 1 was 7,500 units During the year, 250,000 units were sold and...

The equity sections for Upperchurch Group at the beginning of the year (January 1) and end...

The equity sections for Upperchurch Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock 75,000 Retained earnings 410,000 Total stockholders’ equity $ 985,000 Stockholders’ Equity (December 31) Common stock—$10 par value, 130,000 shares authorized, 55,520 shares issued, 4,000 shares in treasury $ 555,200 Paid-in capital...

The equity sections for Atticus Group at the beginning of the year (January 1) and end...

The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$5 par value, 100,000 shares authorized, 30,000 shares issued and outstanding $ 150,000 Paid-in capital in excess of par value, common stock 110,000 Retained earnings 340,000 Total stockholders’ equity $ 600,000 Stockholders’ Equity (December 31) Common stock—$5 par value, 100,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury $ 175,000 Paid-in capital...

The equity sections for Atticus Group at the beginning of the year (January 1) and end...

The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$6 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 240,000 Paid-in capital in excess of par value, common stock 200,000 Retained earnings 320,000 Total stockholders’ equity $ 760,000 Stockholders’ Equity (December 31) Common stock—$6 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury $ 284,400 Paid-in capital...

Alysha plans to invest $4000 in an equity fund every year end beginning this year. The...

Alysha plans to invest $4000 in an equity fund every year end beginning this year. The expected annual return on the fund is 15 percent. How much would she expect to have at the end of 16 years? A. $222870 B. $194322 C. $190322 D. $260300

An investment will pay $292,600 at the end of next year for an investment of $190,000...

An investment will pay $292,600 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 10% over the same period, should this investment be made? A. Yes, because the investment will yield $75,240 more than putting the money in a bank. B. No, because the investment will yield $83,600 less than putting the money in a bank. C. Yes, because the investment will yield $66,880 more than...

Subjects