Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last year's sales were $600 million and total assets were $400 million. None of the liabilities vary directly with sales, but assets and costs do. If the sales growth rate for Pickup is 20%, how much external financing is needed? Select one: a. $5.2 millionb. $15.2 millionc. $26.0 milliond. $13.1 millione. $21.3 million

Question 8

Not yet answered Marked out of 1 Flag question

Question text

Moore Money Inc. has a profit margin of 11% and a retention ratio of 70%. Last year, the firm had sales of $500 and total assets of $1,000. The desired total debt ratio is 75%. What is the firm's sustainable growth rate? Select one:

a. 2.5%b. 18.2%c. 7.1%d. 4.0%e. 11.3%

Question 19

Not yet answered Marked out of 1 Flag question

Question text

Given the following information: sales = $450, costs = $350, tax rate = 34%, retention ratio = 30%, production = 95% of capacity, sales increase = 10%. What is the expected addition to retained earnings? (Assume costs change directly with sales.) Select one:

a. $21.78b. $50.82c. $11.22d. $19.80e. $1.98

A Toronto banker considering loaning money to a firm for ten years would most likely prefer the firm have a debt ratio of _____ and a times interest earned ratio of _____. Select one:

a. .75; .75b. .45; 1.75c. .40; 2.50d. .50; 1.00e. .35; 3.00

Which one of the following statements is correct if a firm has a receivables turnover measure of 10?

Select one:

a. It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.b. The firm has ten times more in accounts receivable than it does in cash.c. The firm has an average collection period of 36.5 days.d. It takes a firm 10 days to collect payment from its customers.e. It takes a firm 36.5 days to pay its creditors.

If a firm has taxable income of $17.5 million and a total tax bill of $6.1 million, and pays 38 cents in tax on its last dollar of income, its marginal tax rate is _______.

Select one:

a. 38%b. 39%c. 25%d. 34%e. 15%