El Nino Sprinkler Systems has a 25% ROE based on beginning equity and a 45% payoutratio. At what rate can El Nino expand according to the sustainable growth model?
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El Nino Sprinkler Systems has a 25% ROE based on beginning equity and a 45% payout
ratio. At what rate can El Nino expand according to the sustainable growth model?
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- Premier Corporation has an ROE of 15.6 percent and a payout ratio of 25 percent. What is its sustainable growth rate?If the Garnett Corp. has a 25 percent ROE and a 18 percent payout ratio, what is its sustainable growth rate?Pls fastIf the Garnett Corp. has a 22 percent ROE and a 21 percent payout ratio, what is it's sustainable growth rate?
- You have located the following information on Webb’s Heating & Air Conditioning: debt ratio is 63 percent, capital intensity is 1.20 times, profit margin is 11.6 percent, and the dividend payout is 16.00 percent. Calculate the sustainable growth rate for Webb. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Sustainable growth rate = ____.__ %XYZ Corp. is anticipating a sustained growth rate of 15% per year. Is it possible for them to achieve this growth rate given the following numbers. Debtequity ratio of 0.40 times Profit margin is 5.3 percent Capital Intensity Ratio is 0,75 times to answer: determine what the dividend payout ratio must be. How do you interpret the result?DeltaCo has a payout ratio of 0.6 and it reinvests the remainder of earnings in new projects. If next year's EPS (EPS1) will be $7.18, new projects have expected return of 15%, and investors require a rate of return is 10.8%, what is the present value of the firm's growth opportunities? Round your answer to the nearest penny.
- Robi Axiata Limited has a book value of Tk 100 per share. Based on CAPM model, investors require an expected return of 10%. The company plans to invest a significant portion of their newly raised capital from IPO for network improvement. Analysts expect that return on equity will be 15% for the next three years and the company plans to retain 70% of their profit for further investment. After year 3, the ROE is expected to drop 10% and payout ratio increases to 0.6. What will be the stock value per share today?Last year Lakesha’s Lounge Furniture Corporation had an ROE of 16.0 percent and a dividend payout ratio of 28 percent. What is the sustainable growth rate? What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Sisters Corporation expects to earn $12 per share next year. The firm's ROE is 15% and its plowback ratio is 60%. Assume the firm's market capitalization rate is 10%. What is the present value of its growth opportunities?
- Adams Corporation is considering four averagerisk projects with the following costs and rates of return: ‘The company estimates that it can issue debt at a rate of ry = 10%, and ifs tax rate is 30%. It can issue preferred stock that pays a constant dividend of $5.00 per year at $49.00 per share. Also, ifs common stock currently sells for $36.00 per share; the next expected dividend, Dy, is $3.50; and the dividend is expected to grow at a constant rate of 6% per year. The target capital structure consists of 75% common stock, 15% debt, and 10%preferred stock.a. What is the cost of each of the capital components?b. What is Adams’s WACC?c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adams accept?Weatherford Industries Inc. has the following ratios:A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin = 0.10; and payout ratio = 0.45, or 45%. Sales lastyear were $100 million. Assuming that these ratios will remain constant, use the AFN equationto determine the maximum growth rate (the sustainable growth rate) Weatherford canachieve without having to employ nonspontaneous external funds.A company projects a rate of return of 20% on new projects. Management plans to plow back 20% of all earnings into the firm. Earnings this year will be $6 per share, and investors expect a rate of return of 12% on stocks facing the same risks as this company. What is the sustainable growth rate? What is the stock price? What is the present value of growth opportunities (PVGO)? What is the P/E ratio? What would the price and P/E ratio be if the firm paid out all earnings as dividends? Please show workings with formulas.
