RITTER CORPORATION
Income Statement 2014
- Revenue $1,035
- Expenses 730
- Depreciation 75
- EBT $ 230
- Tax 73
- Net Income $ 157
- Dividends $ 22
RITTER CORPORATION
Balance Sheets
December 31
|
|
2013
|
2014
|
|
Assets
|
|
|
|
Cash
|
$76
|
$90
|
|
Other current assets
|
246
|
280
|
|
Net fixed assets
|
650
|
816
|
|
Total assets
|
$972
|
$1,186
|
|
Liabilities and Equity
|
|
|
|
Accounts payable
|
$280
|
$289
|
|
Long Term debt
|
0
|
70
|
|
Stockholders equity
|
692
|
827
|
|
Total liabilities and equality
|
972
|
1,186
|
a. Determine the change in net working capital in 2014.
b. Determine the cash fl ow generated by the firm's assets during the year 2014.
The Johnson Company has an ROE of 12.1 % and a payout ratio of 30 percent. What is the company's sustainable growth rate? Can the company's actual growth rate be different from its sustainable growth rate? Why or why not? How can the company increase its sustainable growth rate?
If you are given $1,000 today and $1,070 next year, which would you prefer if you can earn 5% on your money.
Suppose company A has just paid $2 in dividends and company B just paid $2.50 in dividends; which company do you think will have a higher stock price?