Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. sound enterprises is looking to lever up the firm.

Sound Enterprises is looking to lever up the firm. Their ROE was 10% with a debt...

70.2K

Verified Solution

Question

Finance

Sound Enterprises is looking to lever up the firm. Their ROE was10% with a debt ratio 0.10. If they pay out 30% of earnings, thenwhat will be the new sustainable growth rate if their new debtratio is 0.250? (Use the approximation)

8.4%

9%

10%

12%

Answer & Explanation Solved by verified expert
3.7 Ratings (502 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Sound Enterprises is looking to lever up the firm. Their ROE was10% with a debt ratio 0.10. If they pay out 30% of earnings, thenwhat will be the new sustainable growth rate if their new debtratio is 0.250? (Use the approximation)8.4%9%10%12%

Other questions asked by students

Q

A batch of 400 sewing machines contains 6 that are defective. (a) Three sewing machines are selected...

Statistics
Q

Phosphorus pentachloride decomposes according to the chemical equation PCl5(g) - PCl3(g) + Cl2(g) A 0.213 mol...

Chemistry
Q

If a circuit consists of a battery connected to multiple resistors, and these resistors are connected...

Physics
Q

The club was in contact with a ball, initially at rest, for about 0.0014 s....

Physics
Q

ntervals Question Parl A publisher wants to estimate the

Statistics
Q

Find the area of a triangle with base 10 cm and height 5 cm.25 sq.cm50...

Algebra
Q

Cameron Company has two major segments (East & West) with the following information: Number of...

Accounting
Q

Write an opinion on How does a company properly elect subchapter "S" status

Accounting
Q

On January 1, a company borrowed cash by issuing a $300,000,5%, installment note to be...

Accounting
Q

T of F? The election of Subchapter S status by a corporation is...

Accounting
Q

Question 1: Derive the relation between a multiperiod logarithmic return o,N and the individual period...

Finance
Q

d. Describe what additional proce statements of a large public company. 11-17 (OBJECTIVES 11-2, 11-3,...

Accounting