Business

FinanceQ&A LibraryEmerson Equine Supplies earned $72,000 in 2012 and pad dividends of $44,640. The firm had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. What is the sustainable growth rate?Start your trial now! First week only $4.99!*arrow_forward*

Question

Emerson Equine Supplies earned $72,000 in 2012 and pad dividends of $44,640. The firm had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. What is the sustainable growth rate?

1 Rating

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: A company is going public with an offering price of $10 per share. The gross spread is 7 percent. Ho...

A: Offer price, P = $ 10 per shareGross spread, S = 7%Portion received by the bank = P x S = $ 10 / sh...

Q: How I can resolve this problem. The management of a firm wants to introduce a new product. the prod...

A: a. what is the break-even level of outpur for each scale of operation?In the first scale of operatio...

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash disc...

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under instal...

Q: What are the expected returns for stocks Y and Z under the conditions shown below? A0 0.04 ...

A: Calculation of Expected Return for Stock Y:

Q: a.If US$1 = C$1.1277, and if the bank in Canada charges 0.9% commission to buy or sell currencies, h...

A: You have posted many unrelated questions. I will address first three of them. Please post the blance...

Q: How I resolve this problems please give me the detail A firm has the following investment alternativ...

A: Hi, since the investment cost is missing in the question. I’m assuming it as $1,400. So the require...

Q: NOTE: You already replied on this question with the answer as indicated below. Unfortunately, the an...

A: All financials below are in $.Initial investment = C0 = Purchase cost of new machine – Post tax salv...

Q: As an option trader, you are constantly looking for opportunities to make an arbitrage transaction (...

A: Part (a)Let's denote current stock price as S0, call premium as C, put premium as P, strike price as...

Q: Kaye's Kitchenware has a market/book ratio equal to 1.200. The firm's stock price is 12.30 USD/share...

A: Market/book ratio of equity = 1.200Hence, MVE / BVE = 1.2Current stock price, P = $ 12.30 / shareNos...

Q: David Rothchild owns 6,001 shares of the Motor Corp. There are 12 seats on the company board of dir...

A: Calculating the number of directors that can be elected by Mr. Rothchild. We have,Number of director...

Q: Assume Technical Investors is thinking about three different size offerings for issuance of addition...

A: The percentage underwriting spread for each size offer is calculated as follows:Percentage underwrit...

Q: A 10-year bond has a coupon rate of 11%, a par value of $1000. If the bond’s YTM is 7%, what is the ...

A: Assume semi annual coupon bond (Such an assumption is customary to bonds in US market). This means c...

Q: Assume a security follows a geometric Brownian motion with volatility parameter sigma=0.2. Assume t...

A: You have stated that "I got an answer of $3.00 for the cost of the call option" and then you have st...

Q: Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4 percen...

A: Calculating the value of after-tax cost of capital. We have,Cost of debt is calculating by the calcu...

Q: Assume that, as a part of its economic development program, your governmental agency has committed t...

A: Such a problem is better solved in an excel. Hence, I have solved it in excel and provided a snapsho...

Q: a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be pai...

A: Hi, I’m answering the first 3 parts of the question as it consists of multiple questions. If you nee...

Q: A Company project of 10 years, Paying 2,000,000 a year with a 4% growth each year, at the end of pro...

A: Preparation of table that showing formula step in excel for calculating present value of cash flow. ...

Q: Required: Use an Excel spreadsheet to calculate the net present value NPV from a "Parent company per...

A: Calculating the value of total cost of plant and depreciation expenses using straight-line method in...

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 / To...

Q: Kountry Kitchen has a cost of equity of 12.5 percent, a pretax cost of debt of 5.8 percent, and the ...

A: Cost of equity, Ke = 125%,Pretax cost of debt, Kd = 5.8%Tax rate, T = 35%WACC = 9.16%Let's assume th...

Q: What is the present value of end-of-year cash flows of $9,000 per year, with the first cash flow rec...

A: Cash flow: It denotes to the sum of cash that keeps flowing in the business and out of business duri...

Q: concatti corporation hired your consulting firm to help them estimate the cost of equity. the yeild ...

A: Bond yield plus risk premium approach:The estimate of the firms cost of equity from retained earning...

Q: You work for a pharmaceutical company that has developed a new drug. The patent on the drug will las...

A: Calculation of Present Value of New Drug:The present value is calculated using the present value of ...

Q: Bourque Enterprises is considering a new project. The project will generate sales of $1.6 million, $...

A: As a first step, let's calculate the NOPAT and working capital requirement of the project. Please se...

Q: A devoted Indiana basketball fan needs $11,200.00 to attend the Final Four exactly one year from tod...

A: As a first step let's assign a symbol to each of the information we have:Future value, FV = $ 11,200...

Q: Hero Manufacturing has 8.5 million shares of common stock outstanding. The current share price is $7...

A: As a first step we need to calculate the weigthed average pre tax cost of debt based on the characte...

Q: Participation #7: Why are ROE and EPS such important measures of performance to investors?

A: Let's recall that an (equity) investor is the last one in the pecking order to get the returns. They...

Q: Digital Organics (DO) has the opportunity to invest $1.06 million now (t = 0) and expects after-tax ...

A: Calculation of Total PV of Interest Tax Shield:Excel Spreadsheet:

Q: R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next yea...

A: Cost of Equity:Cost of equity is the amount or rate which a company bears for the issue of share. In...

Q: Your stock goes down 5.3%, then up 1.4%, and up again 4.7% over a 3 day period. What was the average...

A: We have:Day Percentage Increase (+)/Decrease (-)...

Q: Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay in...

A: Calculation of Yield to Maturity:Excel Spreadsheet:

Q: Assume that a radiology group practice has the following cost structure: Fixed cost=$500,000 Varia...

A: Fixed Costs are those costs that remains constant within a relevant range as the level of activity o...

Q: Boeing Corporation or Northrop Grumman, for Goldman Sachs. You are anaggressive investment portfolio...

A: Click to see the answer

Q: Use the continuous compound interest formula to find the indicated value P = $2,570; r = 3.14%; t = ...

A: Continuous Compound Interest Method:The continuous compound interest method is the method of calcula...

Q: Barbie is going to borrow $5,000 to help write a book. The loan is for one year and the money can e...

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan...

Q: The manufacturer of a product that a variable cost of $2.50 per unit and total fixed cost of $125,00...

A: The manufacturer of a product that a variable cost of $2.50 per unit and total fixed cost of $125,00...

Q: On Thursday, May 18, the board of directors of ABC declares a 30-cent-per-share dividend to sharehol...

A: On Thursday, May 18, the board of directors of ABC declares a 30-cent-per-share dividend to sharehol...

Q: Your oldest daughter is about to start kindergarten in a private school. Tuition is $10,000 per yea...

A: Calculation of Present Value:There are 2 issues with the annuity. The one with the current tuition f...

Q: What capital components are typically included when estimating a firm’s corporate cost of capital? I...

A: Before we address the question, let's understand a bit about the capital itself.Capital:Capital is a...

Q: Given relatively stable financial market conditions, determine which one of the followingbonds would...

A: The bonds that would exhibit the least price volatility is “5-year, 10% coupon bond”.

Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at $1,01...

A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence, perio...

Q: The company yesterday paid their annual dividend of $2.00 and the expected price in 2 years is $100....

A: Stock’s Required Return:Stock’s required return is the minimum amount or rate of return which an inv...

Q: Book Value versus Market Value Dinklage Corp. has 8 million shares of common stock outstanding. The ...

A: Equity Details:Dinklage Corp. has Ns = 8 million shares of common stock outstanding.The current shar...

Q: What is the present value of an annuity that pays $200 per month for 10 years if money is worth 5% c...

A: Present Value:It is the discounted value of cash flows of different period or sum of future money fr...

Q: Suppose that the standard deviation of returns from a typical share is about 0.45 (or 45%) a year. T...

A: Let's try to solve this problem conceptually first before getting into excel.Suppose we include n nu...

Q: Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January February...

A: Variance:Variance is a valuation of difference in each stock from the mean of stocks. It shows how a...

Q: Six potential services a bank provides?

A: A bank is a financial institution that accepts deposits from the public and makes loans from these d...

Q: Compute the nominal annual rate of interest for the simple annuity due. Future value: - Present valu...

A: Calculation of Nominal Annual Rate of Interest:The Nominal Annual Rate of Interest can be calculated...

Q: Case Study #3: Chapter 6 Business Analysis - A business can be valued by capitalizing its earnings ...

A: You have asked a question with five sub parts. I will address the first three sub parts. Please post...

Q: The following numbers were randomly generated from a standard normal distribution: -0.25 0.3 ...

A: The formula for simulated price,S based on the initial closing price of S0 will be given by the equa...