A firm has sales of $1.2 million, a profit margin of 5%, and a dividend payout ratio of 30%. How much will be added to retained earnings next year if sales Increase by 6%? O$15.900 O$21.600 O$47.700 O$44.520

Q: A firm pays a 5.80 dividend at the end of year one (d1), has a stock price of 103, and a constant…

A:

Q: McCormack co. Wishes to maintain a growth rate of 6 percent a year, a debt equity ratio of 0.49, and…

A: Calculation of profit margin: Answer: Profit margin is 12.76%

Q: Suppose you are valuing a company that is growing its free cash flows at a stable 1.6% annual rate…

A: In this problem we have to calculate present value of cash flow and find out value of equity.

Q: Chadron Motors has a profit margin of 5 percent and a dividend payout ratio of 20 percent. The total…

A: As per the guidelines we can provide the answer for 1 question ( as the question are different).…

Q: The newspaper reported last week that Bennington Enterprises earned $17 million this year. The…

A: Answer  Total Earning  = $17 millions  ROE = 14% Retainsation ratio = 70%

Q: A firm has a profit margin of 3% and an equity multiplier of 1.9.  Its sales are $150 million ,and…

A:

Q: A company pays out all its earnings as dividends. It will pay its next $2.50 per share dividend in a…

A: Price earning ratio = Share price/ EPS Share price = Dividend per share/ Discount rate = $ 2.50/ 8%…

Q: Calculate the value of the firm, given that the current profit is $5,000. The expected growth rate…

A: Value of firm = [ { Profit * ( 1 + Interest rate ) } / { Interest rate - Growth rate } ]…

Q: a firm has an a profit margin of 3.8% and an equity multiplier of 1.90. its sales are 166.0 mil usd,…

A: Using Dupont's ROE decomposition formula,ROE = Net income / Equity = Net income / Sales x Sales /…

Q: A company’s estimated growth rate in dividends is 6%, its currentstock price is $40, and its…

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: ou have looked at the current financial statements for J&R Homes, Co. The company has an EBIT of…

A: Financial Statement- Financial statements contain information on an entity's financial activity and…

Q: A business starts this year with 2,500,000 assets with no debt. The expected ROE equals 10%. Suppose…

A: Return on equity (ROE) is used to measure the returns from shareholder’s equity. Shareholder’s…

Q: Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin…

A: EBIT = [ (Sales x net profit margin) / (1 - tax rate) ] + (Amount of debt * Interest rate) EBIT =…

Q: Dividend growth rate of a company, if its total book equity is 60 000, and the last year profit and…

A: The dividend growth rate is the annualised percentage rate of increase in a stock's dividend over a…

Q: Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares…

A: Retention ratio = 60% Net income = $8 million Number of shares = 4 million

Q: You've collected the following information about Molino, Inc.: $205,000 Sales $ 14,200 $ 9,100…

A: Step 1: Calculate the retention ratio (b) as follows: Step 2: Calculate the return on equity (ROE)…

Q: Ramble On Co. wishes to maintain a growth rate of 6 percent a year, a debt-equity ratio of 0.49, and…

A: Calculate the return on equity as follows: Growth rate=ROE×Retention ratio1-ROE×Retention…

Q: A company has a return on equity of 32 percent and plowback ratio of 50 percent. If the earnings of…

A: The Stock price is the current price of the share that is available in the stock market.

Q: Plank’s Plants had net income of $10,000 on sales of $100,000 last year. The firm paid a dividend of…

A: Given information in question :- Company net income     =$10,000 Company sales…

Q: You are given the following information about a firm: Cost of equity is 10% Cash flow to…

A: The question is based on the concept of financial management.

Q: A firm has a positive economic value added (EVA) of $500 (all amounts in thousands), long-term debt…

A: Economic value added is computed by subtracting the weighted interest expenses from the Net…

Q: Chadron Motors has a profit margin of 5 percent and a dividend payout ratio of 20 percent. The total…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: what is the firm's internal growth rate (IGR) if ROA is 14.5%, ROE is 18.8%, the firm retains 65% of…

A: Internal growth rate can be calculated from return on assets and retention ratio.

Q: Ramble On Co. wishes to maintain a growth rate of 10.4 percent per year, a debt-equity ratio of 1.0,…

A: Calculation of profit margin: Answer: The profit margin must the firm achieve should be 8.26%

Q: JHOPE "I am your hope" Compary has 10% net profit margin on sales in previous years and expects to…

A:

Q: A company will pay a dividend of $1.50 this year. Dividends are expected to grow by 6 % per year. If…

A: Given: Dividend =$1.5 Growth rate = 6% Cost of equity = 10%

Q: Perine, Inc., has balance sheet equity of $5.3 million. At the same time, the income statement shows…

A: Current EPS = net income/ no of outstanding Share Current EPS = 763200/120000 Current EPS =6.36

Q: Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given…

A: Additional fund Needed (AFN) is also known as external financing needed. It is the amount of funds…

Q: A company has generated over the last year, with the sales of all its product lines, an operating…

A: ROA It is the return on assets to measure the firm's ability to generate net earnings with its…

Q: Galeshouse Gas Stations, Inc ., expects to increase from $1,500,000 to $1,700,000 nect year. Mr.…

A: Solution:- Introduction:- The  following information given in the problem as follows:- Expected…

Q: Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the…

A: In the given question we need to compute the value of the firm.

Q: Plank’s Plants had net income of $6,000 on sales of $70,000 last year. The firm paid a dividend of…

A: Sustainable growth rate is the maximum growth rate at which firm can grow. It can be calculated…

Q: Wazir Ali Corporation expects next year’s net income to be $15 million. The firm’s debt ratio is…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Company has expected earnings of $4.8 per share for next year. The firm's ROE is 16%, and its…

A: Present value of growth opportunities (PVGO) can be calculated as below:

Q: A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5…

A: Total sales is $64million Gross profit is $12million Operating income of $8.5 million Net income of…

Q: A firm has a profit margin of 15% on sales of $20,000,000. If the firm has debt of $7,500,000, total…

A: Return on assets (ROA) is the return that the company earns from the assets invested in the…

Q: Consider a retail firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets…

A: ROE is Return on equity, which means how much net income has been attributable to the equity…

Q: What is the return on assets? Return on Stockholders' equity? If the firm has a asset turnover ratio…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.