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MAVERICK [17]
2 years ago
15

Ocean co. just paid a dividend of $2 per share out of earnings of $4 per share. if the book value per share is $25, what is the

sustainable growth rate (sgr)?
Business
1 answer:
BaLLatris [955]2 years ago
6 0

The sustainable growth rate (sgr) is 8 percent.

<h3><u>What is Sustainable growth rate?</u></h3>
  • The highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as the sustainable growth rate (SGR).
  • In other words, it is the rate at which the business may expand without borrowing money from other sources by using only its own internal earnings.
  • The SGR aims to increase sales and revenue while reducing financial leverage.

A corporation can avoid financial trouble and excessive leverage by achieving the SGR. Get or compute the company's return on equity (ROE) first. By comparing net income to shareholders' equity, ROE assesses a company's profitability.

Know more about sustainable growth rate with the help of the given link:

brainly.com/question/5452967

#SPJ4

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For Crafton Company, indirect labor is budgeted for $57,000 and factory supervision is budgeted for $65,000 at normal capacity o
Masteriza [31]

Answer:

$124,700

Explanation:

Indirect labor budgeted is $57,000

Factory supervision is $65,000

The normal capacity is 142,500

Direct labor 145,000

Therefore the flexible budget can be calculated as follows

= 57,000+65,000/142,500

= 122,000/142,500

= 0.86

0.86×145,000

= 124,700

Hence the flexible budget is $124,700

4 0
3 years ago
Refer to the accompanying national income statistics (in billions of dollars). Personal income is Multiple Choice $317 billion.
Elden [556K]

Unclear question. I provided some information on national income statistics.

<u>Explanation:</u>

The national income statistics is an economic indicator that tells us the value of goods and services (as in this case in billion of dollars) produced by a country's economy.

Information about the national income statistics of a country is usually published by the World Bank; an internal financial institution.

7 0
3 years ago
____ is the best way to help the alcoholic and the family. A not becoming involved B. Open communication C . Tough love
Leya [2.2K]
Out of all your options,, the best answer is option B. the best way to help both the alcoholic and their family is by communicating with both people. by not becoming involved or being rude to give "tough love", you are only making the situation worse. alcoholics are not horrible people and neither are their families,, so the best way to help them both is by helping them communicate to help fix the situation.
let me know if you have any further questions
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5 0
3 years ago
Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in
sleet_krkn [62]

Answer:

Option B is correct.

Tom's outside basis be in Freedom,LLC=$26,100

Explanation:

Option B is correct.

Amount Paid by Tom for buying Bob's LLC interest=$23,000

Tom's Share of LLC debt= $3,100

Tom's outside basis be in Freedom,LLC= Amount Paid by Tom for buying Bob's LLC interest + Tom's Share of LLC debt

Tom's outside basis be in Freedom,LLC= $23,000+$3,100

Tom's outside basis be in Freedom,LLC=$26,100

8 0
3 years ago
Movie theaters tend to charge higher ticket prices for evening and weekend shows. This implies that the demand for these tickets
zavuch27 [327]

Answer:

A. inelastic

Explanation:

Inelastic demand is when people buy about same amount whether price drops or rises.

Even with the higher changes in the prices in the cinema, there is not considerable impact on Movie going audience. Also, addition to it, people go to cinemas at evening and weekend shows more than daytime shows or weekday shows even the tickets have price higher.

<u>This shows that the inelastic nature of movie ticket demand.</u>

3 0
3 years ago
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