Plowback ratio, long-term debt ratio, return on equity are three figures must remain constant to determine a firm's sustainable growth rate
<u>Explanation:</u>
Sustainable growth is the realistically achievable extension that a company could own outwardly falling into difficulties. A firm can simply improve financial support if there are assets that can be guaranteed and if its debt-to-equity ratio is sensible concerning its production.
The decrease in dividends typically wrecks the company's stock price. ROE estimates the profitability of a company by examining net income. If the company grows outside equity or expands its debt-equity ratio, it can arise at a greater rate than the sustainable growth rate. The company would require to acquire supplementary debt or equity to obtain up for this cash flow shortfall.
By the term quarter, we mean to say that a year is to be divided in four equal parts. Each year has 12 months. Therefore, each quarter is only composed of 3 months. The rate of tripling the money in 36 months can also be expressed in its equivalent in 3 months.
3/36 = x /3
The value of 3 is equal to 9/36 or 1/4. Therefore, the money will grow by 0.25% every quarter.
Revenue and retained earnings provide insights into a company’s financial performance. While Retained earnings are an accumulation of a company's net income and net losses over all the years the business has been operating whereas, Revenue is a critical component of the income statement.
Retained earnings are the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders. Retained earnings make up part of the stockholder's equity on the balance sheet.
Revenue, sometimes referred to as gross sales, affects retained earnings since any increases in revenue through sales and investments boost profits or net income.
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Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
Answer: Under class
Explanation:
According to the question, Seth belongs to the under class as in the class hierarchy the underclass is one of the segment that belongs to the lowest position.
The people who belongs to the lowest or the bottom position in the society and also become the victim of the poverty in the society.
The underclass people are also comes under the economical weak section and they also lack of the educational and the social skills.
Therefore, Underclass is the correct answer.
