For the most recent fiscal year, the Hammock Company's total equity was $ 450 and net income was equal to $97. Of the $97 net income, $44 was retained. What is the sustainable growth rate for the Ladder Company? For the most recent
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- For the most recent fiscal year, the Hammock Company's total equity was $450 and net income was equal to $97. Of the $97 net income, $44 was retained. What is the sustainable growth rate for the Ladder Company?Petal Providers Corporation, described in Problem 1, is interested in estimating its sustainable sales growth rate. Last year revenues were $1 million, the net profit was $50,000, the investment in assets was $750,000, payables and accruals were $100,000, and equity at the end of the year was $450,000 (i.e., beginning of year equity of $400,000 plus retained profits of $50,000). The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future. A. Estimate the sustainable sales growth rate for Petal Providers based on the information provided in this problem. B. How would your answer in Part A change if economic growth is average and Petal Providers’ net profit margin is 7 percent?C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580
- Last year Berry Co. reported total assets of $400, equity of $200, net income of $50, dividends of $10, and earnings retained in the period of $40. (1) What is Berry Co.'s sustainable growth rate and (2) internal growth rate? Multiple Choice о O (1) 20% / (2) 10% (1) 10% / (2) 20% (1) 20% / (2) 20% (1) 30% / (2) 15% 1Mr. Park presented its projected net sales of 30,000,000.00 to the Board as part of the business analysis of its newest SKU. IN the presentation, it was determined that the COGS/COS from last year's income statement is 76% based on the vertical analysis. The gross profic under this scenario is ______.For fiscal year 2021, Costco Wholesale Corporation ( COST) had a net profit margin of 2.60%, asset turnover of 3.24, and a book equity multiplier of 3.28. a. Use this data to compute Costco's ROE using the DuPont Identity. b. If Costco's managers wanted to increase its ROE by 1.10 percentage points, how much higher would their new asset turnover need to be? c. If Costco's net profit margin fell by 1.10 percentage points, by how much would their asset turnover need to increase to maintain their ROE? a. Use this data to compute Costco's ROE using the DuPont Identity. Costco's ROE is %. (Round to two decimal places.) If Costco's net profit margin fell by 1.05 percentage points, by how much would their asset turnover need to increase to maintain their ROE?
- Based on the following information, calculate the sustainable growth rate for Kaleb's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 8.1% .51 .67 $ 29,000 $19,720Following are financial statement numbers and ratios for Martin Corp. for the year ended December 31, Year 1. Total revenue (in millions) $47,248 Net operating profit margin (NOPM) 8.8% Net operating asset turnover (NOAT) 3.3 If we expected revenue growth of 3.5% in the next year, what would projected revenue be for Year 2? Select one: a. $47,248.0 b. $44,598.3 c. None of these are correct d. $48,901.7 e. $53,205.0Flitter reported net income of $23,500 for the past year. At the beginning of the year the company had $212,000 in assets and $62,000 in liabilities. By year end, assets had increased to $312,000 and liabilities were $87,000. Calculate its return on assets: Multiple Choice 11.1%. 9.0%. 7.5%. 35.7%. 26.0%.
- Tibbs Inc. had the following data for the most recent year: Net income = $300; Net operating profit after taxes (NOPAT) = $380; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300. What was its return on invested capital (ROIC)? Select the correct answer. a. 16.92% b. 16.52% c. 17.12% d. 16.72% e. 16.32%What is the sustainable growth rate given the following information: Shareholders' equity $650,000; net income $80,000; dividends paid $18,000.OnTheMove Inc. has profit margin of 9%, total asset turnover of 1.5, equity multiplier of 2 and a payout ratio of 35%. What is the firm's sustainable growth rate? a) 9.00% Ob) 9.45% c) 27.00% d) 21.29% e) 10.44%