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I need help with these corporation finance exercises QUESTION 1 1. Bruto's sales for year 2016 were $99.05 millions of dollars. For that year the
I need help with these corporation finance exercises
QUESTION 1 "1. Bruto's sales for year 2016 were $99.05 millions of dollars. For that year the cost of sales without depreciation was 20%, the value of depreciation was 7% the value of sales, and interest expense was 15 millions of USD.Assuming that the income tax for the company is 35%, that sales are expected to increase in 35%, and that interest expense will remain constant at the 2016 levels, what is the company's forecast for Net Income in 2017, in millions of dollars? Note: Express the terms of your answer strictly numerical terms." 10 points QUESTION 2 "2. Metronic has $109M in equity and $67M in debt and forecasts $22M in net income for the year. It currently pays dividends equal to 34% of its net income. You are analyzing a potential change in payout policy -a decrease in dividends to 25% of net income. How would this change affect your internal and sustainable growth rates?What is the internal growth rate of Metronic under the current payout policy? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" 10 points QUESTION 3 "3. Metronic has $109M in equity and $67M in debt and forecasts $22M in net income for the year. It currently pays dividends equal to 34% of its net income. You are analyzing a potential change in payout policy -an increase in dividends to 25% of net income. How would this change affect your internal and sustainable growth rates? What is the sustainable growth rate of Metronic under the current payout policy? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" 10 points QUESTION 4 "4. Metronic has $109M in equity and $67M in debt and forecasts $22M in net income for the year. It currently pays dividends equal to 34% of its net income. You are analyzing a potential change in payout policy -an increase in dividends to 25% of net income. How would this change affect your internal and sustainable growth rates? What is the internal growth rate of Metronic under the considered payout policy? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" 10 points QUESTION 5 "5. Metronic has $109M in equity and $67M in debt and forecasts $22M in net income for the year. It currently pays dividends equal to 34% of its net income. You are analyzing a potential change in payout policy -an increase in dividends to 25% of net income. How would this change affect your internal and sustainable growth rates? What is the sustainable growth rate of Metronic under the considered payout policy? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"Step by Step Solution
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