subject
Business, 14.10.2020 01:01 yedida

As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider the following case of Green Caterpillar Garden Supplies Inc.: Green Caterpillar Garden Supplies Inc. has no debt in its capital structure and has $300,000,000 in assets. Its sales revenues last year were $180,000,000 with a net income of $3,000,000. The company distributed $100,000 as dividends to its shareholders last year. Given the information above, what is Green Caterpillar Garden Supplies Inc.’s sustainable growth rate? 2.9703558% 0.2935253% 0.98% 0.0333771% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm maintains a constant net profit margin. The firm uses all equity and no debt financing. The firm maintains a constant ratio of liabilities to equity. Common stock is the firm’s only form of equity.

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 21:30, Amholloway13
Ming chen began a professional practice on june 1 and plans to prepare financial statements at the end of each month. during june, ming chen (the owner) completed these transactions. a. owner invested $61,000 cash in the company along with equipment that had a $25,000 market value. b. the company paid $1,900 cash for rent of office space for the month. c. the company purchased $15,000 of additional equipment on credit (payment due within 30 days). d. the company completed work for a client and immediately collected the $2,100 cash earned. e. the company completed work for a client and sent a bill for $7,000 to be received within 30 days. f. the company purchased additional equipment for $5,500 cash. g. the company paid an assistant $3,000 cash as wages for the month. h. the company collected $5,200 cash as a partial payment for the amount owed by the client in transaction e. i. the company paid $15,000 cash to settle the liability created in transaction c. j. owner withdrew $1,500 cash from the company for personal use. required: enter the impact of each transaction on individual items of the accounting equation. (enter decreases to account balances with a minus sign.)
Answers: 2
image
Business, 22.06.2019 00:50, yolo123321
Cool beans is a locally owned coffee shop that competes with two large coffee chains, planeteuro and frothies. alicia, the owner, hired two students to count the number of customers that entered each of the coffee shops to estimate what percent of people who are interested in coffee are visiting each shop. after a week, the students found the following results: 589 visited cool beans, 839 visited planeteuro, and 1,290 visited frothies. the students were surprised that cool beans had 139 visits on monday which represented 59% of all people who visited one of the three coffee shops on mondays. how many people visited one of the three coffee shops during the week?
Answers: 2
image
Business, 22.06.2019 05:20, lauren21bunch
142"what is the value of n? soefon11402bebe99918+19: 00esseeshop60-990 0esle
Answers: 1
image
Business, 22.06.2019 20:00, payshencec21
Ajax corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio? a. 4.72b. 4.97c. 5.23d. 5.51e. 5.80
Answers: 1
You know the right answer?
As a firm grows, it must support increases in revenue with new investments in assets. The self-suppo...

Questions in other subjects:

Konu
Mathematics, 21.11.2019 06:31
Konu
Mathematics, 21.11.2019 06:31