1)Porsc Automobiles wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio...

1)Porsc Automobiles wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio of 26 percent and a profit margin of 5 percent. The firm has a capital intensity ratio of 2. What is the debt–equity ratio that is required to achieve the firm's desired rate of growth?

2)Samaroland currently has $298,900 in sales and is operating at 86 percent of the firm's capacity. The dividend payout ratio is 40 percent and cost of goods sold is $211,300. What is the full capacity level of sales?

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A firm wishes to maintain an internal growth rate of 9.1 percent and a dividend payout...

A firm wishes to maintain an internal growth rate of 9.1 percent and a dividend payout ratio of 40 percent. The current profit margin is 8.9 percent, and the firm uses no external financing sources. What must total asset turnover be? (round 4 decimal places)

A firm wishes to maintain an internal growth rate of 9.3 percent and a dividend payout...

A firm wishes to maintain an internal growth rate of 9.3 percent and a dividend payout ratio of 39 percent. The current profit margin is 6.4 percent, and the firm uses no external financing sources. What must total asset turnover be?

Typically the calculation for sustainable growth in earnings per share = (1 - payout ratio)x (Return...

Typically the calculation for sustainable growth in earnings per share = (1 - payout ratio)x (Return on equity). a. Can you use the same equation to compute growth in operating income? b. Under what assumptions will this sustainable growth rate also be equal to your expected growth rate? c. Increasing the amount you reinvest back into the business (reduce the payout ratio or increase the reinvestment rate) will increase the growth rate for any company that is prfitable. Will it...

The Green Giant has a 7 percent profit margin and a 38 percent dividend payout ratio....

The Green Giant has a 7 percent profit margin and a 38 percent dividend payout ratio. The total asset turnover is 1.3 times and the equity multiplier is 1.4 times. What is the sustainable rate of growth? A. 12.01% B. 8.58% C. 9.88% D. 12.74% E. 1.82%

The Green Giant has a 6 percent profit margin and a 65 percent dividend payout ratio....

The Green Giant has a 6 percent profit margin and a 65 percent dividend payout ratio. The total asset turnover is 1.5 and the equity multiplier is 1.6. What is the sustainable rate of growth?

Company A wants to maintain a growth rate of 8 percent a year, a debt-equity ratio...

Company A wants to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.47, and a dividend payout ratio of 58 percent. The ratio of total assets to sales is constant at 1.34. What profit margin must the firm achieve? Hint: If we find the ROE, we can solve the DuPont identity for profit margin. We can calculate ROE from the sustainable growth rate equation.

9. Last year, a firm had a ROA of 14.5 percent and a dividend payout ratio...

9. Last year, a firm had a ROA of 14.5 percent and a dividend payout ratio of 35 percent. What is the firm’s internal growth rate? A. 33.33% B. 25.40% C. 19.05% D. 13.64% E. 10.41% 10. In 2014, Umbrellas Unlimited, Inc. had an ROE of 18.5 percent and a dividend payout ratio of 40 percent. What is the sustainable growth rate? A. 19.76% B. 13.17% C. 12.49% D. 10.99% E. 10.12% 14. In 2015, Burgundy Shoes, Inc. had net...

1. Define target payout ratio and optimal dividend policy?

A firm wishes to maintain an internal growth rate of 9.5 percentand a dividend payout...

A firm wishes to maintain an internal growth rate of 9.5 percent and a dividend payout ratio of 42 percent. The current profit margin is 7.5 percent, and the firm uses no external financing sources. What must total asset turnover be? (round 4 decimals)

Find out constant payout ratio in %, Constant Growth rate in %, Residual Distribution pay out ratio in %.

MethodRequiredParameterUoMYears2016Constant Payout Ratio MethodNet IncomeAmount2,843,186Dividend PaidAmount1,192,827Payout Ratio%????Dividend Constant Growth MethodDividend PaidAmount1,192,827Growth%????Residual Distribution MethodNet IncomeAmount2,843,186Retained EarningAmount1,650,359Dividend PaidAmount1,192,827Payout Ratio%????Find out constant payout ratio in %, Constant Growth rate in %, Residual Distribution pay out ratio in %. Based on your working, please specify with proper justification that which method the company is following to pay dividends? Constant Payout Ratio MethodDividend Constant Growth MethodResidual Distribution MethodJustification ________________________Mark with "YES" _______________________

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