Question: This is the third time I post this through Chegg and nobody gave me the right answer. I have a portal and I can check

 This is the third time I post this through Chegg and This is the third time I post this through Chegg and nobody gave me the right answer. I have a portal and I can check the numbers.

Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% n 2017 and all assets and ilab ties increase correspondingly. Income Statement $ 7,000 Sales Costs, including interest Net income 2,000 Balance Sheet, Year-End 2015 $ 6,125 $5,700 2015 s 2,625 $ 2,533 3,167 2016 2016 3,500 $ 6,125 Net assets Debt Equry Total $ 5 700 Total 6,125 5,700 a. If the payout ratio is set at 65% and no external debt or equity s to be issued, what is the maximum possible growth rate for Archimedes? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal growth rate b if the pa out ratio is set at 65% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate or Archimedes? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate 1% Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% n 2017 and all assets and ilab ties increase correspondingly. Income Statement $ 7,000 Sales Costs, including interest Net income 2,000 Balance Sheet, Year-End 2015 $ 6,125 $5,700 2015 s 2,625 $ 2,533 3,167 2016 2016 3,500 $ 6,125 Net assets Debt Equry Total $ 5 700 Total 6,125 5,700 a. If the payout ratio is set at 65% and no external debt or equity s to be issued, what is the maximum possible growth rate for Archimedes? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal growth rate b if the pa out ratio is set at 65% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate or Archimedes? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate 1%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!