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1. Profit margin is 15% and the dividend amount distributed to shareholders represents RO 1.237.5. Last year, soles were RO 15.000 and total assets were

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1. Profit margin is 15% and the dividend amount distributed to shareholders represents RO 1.237.5. Last year, soles were RO 15.000 and total assets were RO 20.000 The desired (5 pts) debt/equity ratio is 40%. What is the sustainable growth rate and the internal growth rate? Interpret 2. The profit margin is 15 and the dividend payout is 70%. Last year's sales were RO 100 million and total assets were RO 80 million The accounts payables represent 30% of total assets The operating accruals are RO 2 The assets and costs vary directly with sales. The firm operates at full capacity. If the sales growth rate is 10% how much external financing is needed? 5 pta) 3. Your employer is considering an investment in new manufacturing equipment. The equipment costs RO 200,000 and will provide annual after-tax inflows of RO 30.000 for 13 years. The firm market value debequity ratio is ds. The risk tree rate is 5% and the market risk premium is 7% The firm's systemic risk is 13. The pretax cost of debitis 6% The flotation costs of debt and equity are 2 and 4% respectively. The firm's tax rate is 30%. Assume the project is of approximately the same risk as the firm's existing operations What is the weighted average cost of capital (5 pts) b. ignoring flotation costs, what is the NPV of the proposed project? (5 pts) All condering otation costs, what is the NPV of the proposed project? (5 pts 4 Calculate the equity multiplier of the ABC Company if the total debit ratio of 15.3 marks)

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