The Green Giant has a 5 percent profit margin and a 36 percent dividend payout ratio. The total asset turnover is 1.4 times and the equity multiplier is 1.4 times. What is the sustainable rate of growth?
The winner of the first annual Tom Morris Golf Invitational…
The winner of the first annual Tom Morris Golf Invitational won $160 in the competition which was held in 1910. In 2015, the winner received $1,570,000. If the winner’s purse continues to increase at the same interest rate, how much will the winner receive in2044?
Caston’s zero coupon bonds have a market price of $318.46, a…
Caston’s zero coupon bonds have a market price of $318.46, a face value of $1,000, and a yield to maturity of 6.69 percent. How many years is it until these bonds mature? Assume semiannual compounding.
The outstanding bonds of Pingale, Incorporated, provide a re…
The outstanding bonds of Pingale, Incorporated, provide a real rate of return of 3.6 percent. If the current rate of inflation is 2.68 percent, what is the actual nominal rate of return on these bonds?
You currently have $6,600. First United Bank will pay you an…
You currently have $6,600. First United Bank will pay you an annual interest rate of 7.7, while Second National Bank will pay you an annual interest rate of 9. How many fewer years must you wait for your account value to grow to $24,700 at Second National Bank?
Mikeska Equipment Repair has net working capital of $560. Lo…
Mikeska Equipment Repair has net working capital of $560. Long-term debt is $3,970, total assets are $7,390, and fixed assets are $3,910. What is the amount of the total liabilities?
Lewis & Price Corporation paid $700 in dividends and $320 in…
Lewis & Price Corporation paid $700 in dividends and $320 in interest this past year. Common stock remained constant at $6,800 and retained earnings decreased by $180. What is the net income for the year?
Nazarian’s has bonds on the market with 13 years to maturity…
Nazarian’s has bonds on the market with 13 years to maturity, a YTM of 7.6 percent, and a current price of $901.98. The bonds make semiannual payments and have a face value of $1,000. What is the coupon rate?
Ramba Trampolines has a net profit margin of 7.5 percent, a…
Ramba Trampolines has a net profit margin of 7.5 percent, a capital intensity ratio of .8, a debt-equity ratio of .6, net income of $31,000, and dividends paid of $15,810. What is the sustainable rate of growth?
A newly issued 10-year, $1,000 face value zero coupon bond j…
A newly issued 10-year, $1,000 face value zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond’s life? Assume semiannual compounding.