Hi, Need help with this question have already completed table A but getting confused with the rest of them. You can right click and open image in new tab to make it alot bigger and more visible.

Imagine a corporation with $1,000,000 of assets and a debt ratio of 40%. ROE (return on equity) is expected to be 20% for the foreseeable future. Assuming the firm maintains the same amount of debt indefinitely (as op- posed to keeping the same debt ratio), respond to the following questions.(12 marks) f. If you have done the calculations correctly in the tables above, you should have the same growth rate every year. How long could the company grow at this constant rate if all the given factors remained the same? a. If the firm doesn't pay out any dividends or re-purchase any shares, what do you expect the firm's earn- ings to be for the next three years? Complete the table to show your calculations. Year Net income Beginning balance, equity Return on equity net income opening equity 20% 20% Dividends and/or repurchases 0 0 0 End of document 1 600,000 720,000 864,000 Ending balance, equity 720,000 864,000 1,036,800 120,000 144,000 172,800 20% b. If the firm doesn't pay any dividends or re-purchase any shares, at what rate would the firm grow from year to year? Complete the table. Year Net income Beginning balance, equity 600,000 Growth rate Ending balance, equity Return on equity = net income I opening equity 20% 20% 20% Dividends and/or repurchases 0 0 0 2 10% 20% 20% C. If the firm pays 50% of its earnings as dividends, at what rate would the firm grow from year to year? Complete the table. Year Net income Dividends Beginning balance, equity 600,000 660,000 726,000 Ending balance, equity Growth rate Return on equity = net income / opening equity % % % 1 2 3 10% 20% 20% d. If the firm uses 80% of its earnings to re-purchase shares from its shareholders, at what rate would the firm grow from year to year? Complete the table. Year Beginning balance, equity Net income Repurchases Return on equity = net income / opening equity % % % Ending balance, equity Growth rate % % e. If the firm pays 50% of its earnings as dividends and uses an additional 20% of its earnings to repur- chase shares from its shareholders, at what rate would the firm grow from year to year? Complete the table. Year Beginning Dividends Growth balance, Net income Repur- chases Ending balance, equity equity Return on equity = net income opening equity % % % % Imagine a corporation with $1,000,000 of assets and a debt ratio of 40%. ROE (return on equity) is expected to be 20% for the foreseeable future. Assuming the firm maintains the same amount of debt indefinitely (as op- posed to keeping the same debt ratio), respond to the following questions.(12 marks) f. If you have done the calculations correctly in the tables above, you should have the same growth rate every year. How long could the company grow at this constant rate if all the given factors remained the same? a. If the firm doesn't pay out any dividends or re-purchase any shares, what do you expect the firm's earn- ings to be for the next three years? Complete the table to show your calculations. Year Net income Beginning balance, equity Return on equity net income opening equity 20% 20% Dividends and/or repurchases 0 0 0 End of document 1 600,000 720,000 864,000 Ending balance, equity 720,000 864,000 1,036,800 120,000 144,000 172,800 20% b. If the firm doesn't pay any dividends or re-purchase any shares, at what rate would the firm grow from year to year? Complete the table. Year Net income Beginning balance, equity 600,000 Growth rate Ending balance, equity Return on equity = net income I opening equity 20% 20% 20% Dividends and/or repurchases 0 0 0 2 10% 20% 20% C. If the firm pays 50% of its earnings as dividends, at what rate would the firm grow from year to year? Complete the table. Year Net income Dividends Beginning balance, equity 600,000 660,000 726,000 Ending balance, equity Growth rate Return on equity = net income / opening equity % % % 1 2 3 10% 20% 20% d. If the firm uses 80% of its earnings to re-purchase shares from its shareholders, at what rate would the firm grow from year to year? Complete the table. Year Beginning balance, equity Net income Repurchases Return on equity = net income / opening equity % % % Ending balance, equity Growth rate % % e. If the firm pays 50% of its earnings as dividends and uses an additional 20% of its earnings to repur- chase shares from its shareholders, at what rate would the firm grow from year to year? Complete the table. Year Beginning Dividends Growth balance, Net income Repur- chases Ending balance, equity equity Return on equity = net income opening equity % % % %