Description of this paper

Abbreviated financial statements for Archimedes Levers are shown in the table below.

Description

solution


Question

Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales increase by 14% in 2014 and all other items, including debt, increase correspondingly.;Income Statement;Sales $ 4,800;Costs, including interest 3,900;Net income $ 900;Balance Sheet, Year-end;2013 2012 2013 2012;Assets $ 3,936 $ 3,500 Debt $ 1,536 $ 1,433;Equity 2,400 2,067;Total $ 3,936 $ 3,500 Total $ 3,936 $ 3,500;a.;If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Round your answer to 1 decimal place.);Growth rate %;b.;If the payout ratio is set at 50% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Round your answer to 2 decimal places.);Growth rate %

 

Paper#29837 | Written in 18-Jul-2015

Price : $32
SiteLock