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I have answers. please show me how to solve them Rio S into had a ROE this year of 10% and you expect its ROE
I have answers. please show me how to solve them
Rio S into had a ROE this year of 10% and you expect its ROE next year to be 12% (both on old and existing projects). What should be the firm's growth in earnings next year? Assume a payout ratio of 80%. Choose the closest number unless you think it cannot be determined. 22.4%. 8%. 3.18%. 2.4%. It cannot be determined from the data. Rio S into has a book value of equity of 1800 and a book value of debt of 1000. It holds excessive cash on its balance sheet of 600. Its net operating income is 250. The interest rate on its debt is 9% and the corporate tax rate is 35%. Accounts receivable are estimated to be 10% of revenues. What is your estimate of the return on equity in the firm (correcting for excessive cash)? Choose the closest number unless you think it cannot be determined. 15.96%. 14.43%%. 11.36%. 8.93%. It cannot be determined from the dataStep by Step Solution
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