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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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According to finance theory firms should attempt to
svlad2 [7]
Maximize shareholder value.
3 0
4 years ago
The ideal marketing objective is ________. idealistic, quantifiable, and consumer-oriented situational, unattainable, and intern
GuDViN [60]

Answer:

The correct answer is: Time specific, realistic and quantifiable.

Explanation:

To begin with, a good marketing campaign must follow certain objectives in order to be fully successfull or at least as high as possible. Therefore that the best objectives to look for regarding marketing expertises are the facts that the objectives are <em>realistic</em>, so that means that it can be possible done by the budget of the company; <em>quantifiable</em>, so that means that the company can measure the benefits of using the campaign and see that the costs were worthy; and finally,<em> </em><em>time specific objectives</em>, so that means that the company can know if their goals are being accomplished in the time expected.

8 0
3 years ago
Corrington Manufacturing Company prepared a fixed budget of 80,000 direct labor hours, with estimated overhead costs of $400,000
Reptile [31]

Answer:

Total Overhead Cost  is  $ 510,000  for 78,000 direct labor hours

Explanation:

Corrington Manufacturing Company

Fixed Budget  80,000 direct labor hours

Variable Overhead  $400,000

Fixed  Overhead $120,000

Flexible Budget 78,000 direct labor hours

Variable Over head = $ 400,000/ 80,000 * 78,000= $ 390,000

Fixed  Overhead $120,000

Total Overhead Cost  is <u> $ 510,000 </u>  for 78,000 direct labor hours

First we divide the variable overhead with the budgeted number of direct labor hours and then multiply it with the flexible labour hours to get the variable overhead at this activity level . The fixed overhead does not change.

8 0
3 years ago
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the proces
sergey [27]

Answer:

The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23

Explanation:

Provided data;

90000 value portfolio with expected returns of 11% and beta of 1.20

($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.

The new expected portfolio return =

rp = 0.1 × 13% + 0.9 × 11%

rp = 0.1 × 0.13 + 0.9 × 0.11

= 11.20%

The new expected portfolio beta =

bp = 0.1 × 1.50 + 0.9 × 1.20

bp = 1.23

7 0
3 years ago
Government forms created by the Federal Reserve must be approved by the Office of the Comptroller of the Currency (OCC). TrueFal
Vikki [24]

Answer:

True

Explanation:

I got it right on my test

5 0
3 years ago
Read 2 more answers
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