Question

In: Finance

Brown and Co. has a return on assets of 14 percent, an equity multiplier of 1.8,...

Brown and Co. has a return on assets of 14 percent, an equity multiplier of 1.8, and a dividend payout ratio of 40 percent. What is the firm’s internal rate of growth?

9.17%

None of the above

5.93%

7.80%

7.68%

Solutions

Expert Solution


Related Solutions

Company R has a return on assets of 12 percent, an equity multiplier of 1.6, and...
Company R has a return on assets of 12 percent, an equity multiplier of 1.6, and a dividend payout ratio of 40 percent. What is Company R's internal rate of growth? A.7.68 percent B.7.76 percent C.7.90 percent D.7.50 percent
What is the return on equity for a bank that has an equity multiplier of 10,...
What is the return on equity for a bank that has an equity multiplier of 10, an interest expense ratio of 5%, and a return on assets of 2%? 1) 15.4% 2) 9.1% 3) 11.8% 4) 20.0% 5) 7.0%
Brown Industries has a debt-equity ratio of 1.2. Its WACC is 14 percent, and its cost...
Brown Industries has a debt-equity ratio of 1.2. Its WACC is 14 percent, and its cost of debt is 5 percent. There is no corporate tax. a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent...
Coca-Cola’s return on assets was 19.4 percent, and return on common shareholders’ equity was 41.7 percent....
Coca-Cola’s return on assets was 19.4 percent, and return on common shareholders’ equity was 41.7 percent. Briefly explain why these two percentages are different. Coca-Cola had earnings per share of $5.12, and PepsiCo had earnings per share of $3.97. Is it accurate to conclude PepsiCo was more profitable? Explain your reasoning. Name a ratio used to evaluate short-term liquidity. Explain what the statement “evaluate short-term liquidity” means. Explain the difference between the current ratio and the quick ratio. Coca-Cola had...
15. SME Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and...
15. SME Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and total equity is $520,000. a. What is the equity multiplier? b. What is the return on equity? c. What is the net income?
1) SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and...
1) SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round...
A firm has a Return on Assets and Return on Equity that are bothlower than...
A firm has a Return on Assets and Return on Equity that are both lower than its industry averages. Its Debt Ratio and Total Asset Turnover both equal its industry average. This firm’s main problem is that:a.its debt is too lowb.its Return on Equity is too low.c.its operating costs are too low.d.its Profit Margin on Sales is too low.
Stock A has a beta of 1.8 and an expected return of 20 percent. Stock B...
Stock A has a beta of 1.8 and an expected return of 20 percent. Stock B has a beta of 1.2 and an expected return of 14 percent. If CAPM holds, what should the return on the market and the risk free rate be?
If a company's prior year had a Return on Investment at -4 percent, assets to equity...
If a company's prior year had a Return on Investment at -4 percent, assets to equity ratio of 2, with a Net profit margin of -1.5 percent, how would you use the dupont system to find the asset turnover ratio? Separately explain how this ratio impacts the company's Return on Investment for the year.
Brown and CO. has total equity of $64,800. There are 15,000 shares of stock outstanding at...
Brown and CO. has total equity of $64,800. There are 15,000 shares of stock outstanding at a market price of $11.66 a share. What is the market-to-book ratio?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT