Question
1. A firm's has a return on equity of 11.6 percent, a profit margin of 6.2 percent, and a payout ratio of 65 percent. What
1. A firm's has a return on equity of 11.6 percent, a profit margin of 6.2 percent, and a payout ratio of 65 percent. What is the retention ratio? What is firm's growth rate? (Show your formula/equation/calculations)
2. A Corp.'s has annual revenue of $412,000 with costs of $212,500. Depreciation is $48,900 and the tax rate is 22.5 percent. The firm has debt outstanding with a value of $185,000 along with 10,500 shares of stock that is selling at $76 a share. The firm has $48,000 of cash. What is the firm's EV/EBITDA ratio? (Show your formula/equation/calculations)
Kindly provide me with the formula/method of getting the final answer, thank you!
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