You've collected the following information about Molino, Inc. 190,000 Sales Net income $13,600 Dividends 8,800 bt $ 76,000 60,000 Total equity a. What is the sustainable growth rate for the company? (Do not round intermediate b. If it does grow at this rate, how much new borrowing will take place in the coming c. What growth rate could be supported with no outside financing at all? (Do not round calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 3216.) year, assuming a constant debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Sustainable growth rate b. Additional borrowing c. Internal growth rate 8.69 )% 6,600.92 3.65 196

Tinsley, Incorporated, wishes to maintain a growth rate of 17 percent per year and a debt-equity ratio of 1.1. The profit margin is 4.4 percent, and total asset turnover is constant at 1.04. What is the dividend payout ratio? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the maximum sustainable growth rate for this company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

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 = ____.__ %

Bio-Plasma Corporation is growing at 31% per year. It is all-equity-financed and has total assets of $2.7 million. Its return on equity is 22%. Its plowback ratio is 45%. What is the internal growth rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. What is the firm’s need for external financing this year? Note: Enter your answer in dollars not in millions. By how much would

Widgets Inc has an expected EBIT of $64,000 in perpetuity and a tax rate of 35 percent. The firm has$95,000 in outstanding debt at an interest rate of 8.5 percent, and its unlevered cost of capital is 15percent. What is the value of the firm according to M&M Proposition I with taxes? Should the companychange its debt–equity ratio if the goal is to maximize the value of the firm? Explain.

Suppose SBD Bank has RSA of $150m and RSL of $140m. If interest rates rise by 1 percent on both RSAs and RSLs, what would be the expected annual change in net interest income (ΔNII) based on $GAP? Show your work. ( How a commercial bank’s value would be affected by an increase in economic growth?

If company’s debt-to-equity ratio is 0.25, what is the weighted average cost of capital for the company if the required rate of return is 12. 1% and the cost of debt is 6.5%? Assume no tax rate A 7.90% B 7.62% C 10.98% D 10.70% E 9.30% Company is considering investing in a project. After consulting with their analysts, they find that the payback period for the project is 2 years and 6 months. If cash inflows are $4, 000. then the initial investment is. Answer rounded to the nearest whole dollar

The ROA of your firm is 5%. The firm also has a debt-asset ratio of 70%. If your firm reinvests 100% of its earnings, at what rate can your assets grow without having to change your capital structure? Further, at what rate can your assets grow without having to raise capital externally?   I know the formula for sustainable growth is ROE x b / 1 - ROE x b   Internal growth ROA x 1 - b / 1 - (ROA x 1- b)   But I do not know how to get the information with what is provided.  I think I'm missing a formula to go from ROA (which is the 5% provided) to ROE.   Can you show me how to solve this problem? Thank you in advance for your help.

If the SGS Corp. has an ROE of 14.5 percent and a payout ratio of 25 percent, what is its sustainable growth rate?   Found in MBA 640 Finance, Economics and Decision Making  in Chapter 3 questions and problems #6

Stevensons bakeries and all equity firm that has a projected perpetual EBIT of $144,000 per year. The cost of equity is 10.5% and the tax rate is 21%. Assume there's no depreciation, no capital spending and no change in networking capital. The firm can borrow perpetual debt at 5.8%. Currently, the firm is considering converting to a debt equity ratio of .54. What is the firms levered value? MM assumptions hold.