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A firm wishes to maintain a growth rate of 12.8% and a dividend payout ratio of 32%. The ratio of total assets to sales is
A firm wishes to maintain a growth rate of 12.8% and a dividend payout ratio of 32%. The ratio of total assets to sales is constant at 0.80, and profit margin is 7.5%. If the firm also wishes to maintain a constant debt-equity ratio, what must it be? (Do not round your Intermediate calculations. Round your final answer to 2 decimal places.) Debt-equity ratio The most recent financial statements for Marpole Inc., are shown here (assuming no income taxes): Statement of Comprehensive Income Statement of Financial Position Sales $ 9,680 Assets $ 16,000 Debt $ 4,000 Costs 7,47 Equity 12.ee Net income $ 2,130 Total $ 16,00 Total $ 16,00 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $11.904. What is the external financing needed? (Do not round Intermediate calculations and round your final answer to 2 decimal places. Omit $ sign in your response.) External financing needed 6 The most recent financial statements for Burnaby Co. are shown here: Statement of comprehensive Income Statement of Financial Position Sales $13,759 Current assets $11,990 Debt Costs 7,850 Fixed assets 28.750 Equity Taxable income $ 5,900 Total $40,650 Total Taxes (40%) 2,360 Net income $ 3,540 $16,488 24, 25e $48,658 Assets and costs are proportional to sales. Debt and equity are not. Burnaby maintains a constant 40% dividend payout ratio. No external equity financing is possible. What is the internal growth rate? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Internal growth rate %6 Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 3.20 6.1% 2.88 25% What is the sustainable growth rate? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Sustainable growth rate %
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