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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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Suppose Will gives his wallet containing $100 to Alex to hold while he works out. During Will’s workout, Alex uses the $100 to p
kondor19780726 [428]

Answer:please refer to the explanation section

Explanation:

Mechanic = $100

Vet = $100

Alex (payment from vet) = $100

Will's $100 bill has created $300.

This situation is explained in detail by the concept known has the multiplier. The multiplier measures how much impact will a change in an exogenous variable will cause in endogenous variables, for example How much a increase in Government spending will change Gross Domestic Product.

The multiplier in this case is 3,

3 0
3 years ago
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard m
vivado [14]

Answer:

C. Benefit

Explanation:

7 0
3 years ago
Which of these is not an advantage of entrepreneurship
Alchen [17]

Answer: 2

Explanation: You don't automatically gain foresight when you start a business

8 0
3 years ago
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related val
levacccp [35]

Answer:

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

2011 $0

2012 $3,000

2013 $6,000

2014 $1,000

Explanation:

Calculation to determine the net gain or loss amortized and charged to pension expense under the corridor approach

Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss

2011 $2,000,000 $1,900,000 $200,000 $ 0 $0

2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)

2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)

2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)

Calculation for 10%Corridor

2011 $0

2012 10%*$2,500,000 =$250,000

2013 10%*$2,950,000 =$295,000

2014 10%*$3,600,000 =$360,000

Calculation for Accumulated Depreciation and Minimum Amortization of Loss

a. As at the beginning of the year

b. ($280,000 – $250,000) ÷ 10 years = $3,000

c. $280,000 – $3,000 + $90,000 = $367,000

d. ($367,000 – $295,000) ÷ 12 years = $6,000

e. $367,000 – $6,000 + $11,000 = $372,000

f ($372,000 – $360,000) ÷ 12 years = $1,000

Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated Depreciation

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

2011 $0

2012 $3,000

2013 $6,000

2014 $1,000

6 0
2 years ago
Which of the following is broadly defined as the development of new products, processes, organizations, management practices, an
omeli [17]

<span>In development of new products, the most defined aspect is the processes.  It takes a great deal of effort and time in product creation in laboratories. Testing the feasibility of new product in actual manufacturing environment. Trials are done to capture and document actual procedures, machine specifications, safety requirement, and actual working parameters to achieve the desired specification of the new product. </span>

3 0
3 years ago
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