The newspaper reported last week that Tisch Enterprises earned $34.07 million this year. The report also stated that the firm’s return on equity is 16 percent. The firm retains 75 percent of its earnings. What will next year's earnings be?

The newspaper reported last week that Tisch Enterprises earned $34.07 million this year. The report also stated that the firm’s return on equity is 16 percent. The firm retains 75 percent of its earnings. What will next year's earnings be?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

See similar textbooks

Related questions

Q: Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales…

A: The return on equity(ROE) measures the financial performance of the company. It measures the…

Q: Bonner Automotive has shareholders' equity of $218,700. The firm owes a total of $141,000 of which…

A: Calculation of amount of net working capital: Answer: Net working capital is $93,500

Q: Bryley, Inc. earned a net profit margin of 5.5 percent last year and had an equity multiplier of…

A: The return on equity can be calculated as per the Dupont equation

Q: a) Newdeal Inc. follows a policy of distributing 45% of its profits and investing the rest in the…

A: Intrinsic Value of stock = [ Expected dividend after 1 year / ( Required rate - Growth rate ) ]…

Q: Last year electric autos had sales of $190 million and assets at the start of the year of $330…

A: The computation of operating profit margin will be: Operating profit margin = Amount of return on…

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: Pacific Wind and Solar pays a dividend at the end of the year of $6 per share, but over the year,…

A: The annual rate of return on the stock can be calculated as sum of dividend yield and capital gain…

Q: The newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report…

A: Calculation of Earnings Growth and Next Year’s Earnings:The earnings growth is 13.50%.

Q: Green Moose Industries reported sales of $743,000 at the end of last year; but this year, sales are…

A: Additional funds needed (AFN) is the net amount that a business entity requires for funding for the…

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 9 percent, a profit margin of 14.70 percent, and…

A: ROA = Net income / Total assets = 9%Profit margin = Net income / Sales = 14.70%Sales = $ 30 million

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: IF a corporation earns $240,000 and the payout ratio ( proportion distributed) is 20 percent, what…

A: Given: Total earnings = $240000 Payout ratio =20% = 0.20

Q: Last year, Marly Brown, Inc. reported an ROE of 25 percent. The firm’s debt-to-equity was 1.5 times,…

A: Internal growth rate refers to the maximum growth rate a company can achieve without any external…

Q: Conn Man’s Shops, a national clothing chain, had sales of $440 million last year. The business has a…

A: Working Notes: 1. Spontaneous liabilities: = Accounts payable + Accrued expenses + Other payables…

Q: Mirrlees Furniture earned $750,000 last year and had a 30% dividend payout ratio. How much did the…

A: Retained earnings is refer as the source of finance through which companies tries to maximize its…

Q: Network Communications has total assets of $1,400,000 and current assets of $600,000. It turns over…

A: Recall the basic equation of accounting: Assets = Liabilities + Equity = Debt + Equity Or, A = D + E…

Q: Dopey, Inc., a national clothing chain had sales of P 300 million last year. The business has a…

A: Given, Dividend payout ratio (D) is 8% Liabilities (L) is 120 ($70+$20+$30) Sales (S) is $300

Q: IF a corporation earns $270,000 and the payout ratio ( proportion distributed) is 30 percent, what…

A: Dividend payout ratio is used to find the proportion of dividend given to their shareholders in…

Q: The Optical Scam Company has forecast an 17 percent sales growth rate for next year. The current…

A: Calculate the external funds needed as follows:

Q: The Huck Printing Co. had sales of $10 million, Operating Income of $3 million; After tax income of…

A: Return on Equity: Return on equity (ROE) is a financial indicator that measures a company's net…

Q: A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3…

A: Dividend per share for common stockhlders = Total dividend to common stockhlders / No. of common…

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and…

A: Basic FrameworkROA = Net income / Total assets = Sales x Profit Margin / Total AssetsHence, Total…

Q: Conn Man’s Shops, a national clothing chain, had sales of $400 million last year. The business has a…

A: The company generally needs external financing when the retained earnings are not enough. The…

Q: Newdeal Inc. follows a policy of distributing 45% of its profits and investing the rest in the…

A: Dividend Payout Ratio = 45% Retention Ratio = 1- Dividend Payout Ratio = 1-45% = 55% ROE = 20%…

Q: Conn Man’s Shops, a national clothing chain, had sales of $440 million last year. The business has a…

A: To meet the business financial needs and operate the business, companies raise the funds from…

Q: A company paid $11,310 in interest and $16,500 in dividends last year. The times interest earned…

A: Data Given:: Interest Expenses= $11,310 Times Interest earned ratio= 2.9 Depreciation expense=…

Q: During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest…

A: Annual cashflow = Cashflow from operating Activities +Cashflow from financing Activities+Cashflow…

Q: he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report…

A: Hi, as per our policy we will answer the first three parts. Kindly repost the remaining parts…

Q: An all-equity firm had a dividend expense of $45,000 last year. The market value of the firmis…

A: Market value today, V is associted with the total expected dividend expense D1 via the following…

Q: A company retains 7,50,000 out of its current earnings. The expected rate of return to the…

A: Retained Earnings (RE) are the aggregate sum of a company's profits that are kept for internal…

Q: Oregon Office Supply had 24,000,000 in sales last year. The company’s net income was 400,000, its…

A: SALE 24,000,000 NET INCOME 400,000 TOTAL ASSETS TURNOVER 6.0 ROE 15% DEBT RATIO ?

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: To estimate Missed Places, Inc.’s (MP) external financing needs, the CFO needs to figure out how…

A: Retained earnings: These are the accumulated earnings of the company. These earnings were…

Q: Cheryl Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the…

A: Balance sheet indicates the financial position of the business entity in the market related to a…

Q: What is the amount of net working capital?

A: Information Provided: Shareholders equity = $218,700 Total liabilities = $141,000 Long Term assets…

Q: Tess' Shop, Inc., a national clothing chain, had sales of P300 millions last year. The business has…

A: A corporation needs financing for its capital projects and other operations. Internal financing can…

Q: Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year, the…

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

Q: Blue Elk Manufacturing reported sales of $720,000 at the end of last year; but this year, sales are…

A: The financial forecast is an important strategic step in the planning process because it helps to…

Q: The newspaper reported last week that SunRise Enterprises earned $34.19 million this year. The…

A: In this case, first, we have to calculate the growth rate & then we would calculate the earnings…

Q: DEF Company is expected to have net income of $250,000 this year. The company traditionally pays out…

Q: Emerson Equine Supplies earned $72,000 last year and paid dividends of $46,800. The firm had equity…

A: Calculate equity amount as follows: Equity = Beginning balance of equity + Earnings - dividend…

Q: How much new long-term debt financing will Esther’s need this year to finance its expected growth?

A: Long Term Debt Financing: It refers to the financing of funds taken by the company in form of…

Question

100%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid a total of $3,000 in dividends and earned a net income of $60,000 this year. What is the ending retained earnings balance?
James Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the EPS for the year for James (rounded to the nearest dollar)?
The newspaper reported last week that SunRise Enterprises earned $34.19 million this year. The report also stated that the firm’s return on equity is 13 percent. The firm retains 85 percent of its earnings. What will next year's earnings be?
It was reported last week that Blue Bell Enterprises earned $18.5 million this year. The report also stated that the firm’s return on equity is 11 percent. The firm retains 80 percent of its earnings. What will next year's earnings be? Round to the nearest whole dollar.
The newspaper reported last week that Chen Enterprises earned $34.03 million this year. The report also stated that the firm’s return on equity is 12 percent. The firm retains 80 percent of its earnings. a. What is the firm's earnings growth rate? b. What will next year's earnings be?
The newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings.  What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate             % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings           $
he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings.  What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate             % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings           $ Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year? (Do not round intermediate…
The newspaper reported last week that Bennington Enterprises earned $17 million this year. The report also stated that the firm’s ROE is 14 percent. Bennington retains 70 percent of its earnings. a. What is the firm's earnings growth rate? (Round the answer to 2 decimal places.) Earnings growth rate             % b. What will next year's earnings be? (Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) Next year's earnings           $