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nlexa [21]
3 years ago
9

The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's

plowback ratio is 60%. a. Calculate the growth rate. (Input your answer as a nearest whole percent.) b. What will be its P/E ratio? (Do not round intermediate calculations.)
Business
1 answer:
pashok25 [27]3 years ago
5 0

Answer:

(A) 6%

(B) 20

Explanation:

The market capitalization rate for Admiral motors is 8%

= 8/100

= 0.08

The expected ROE is 10%

= 10/100

= 0.1

The expected EPS is $5

The Plowback ratio is 60%

= 60/100

= 0.6

(A) The growth rate can be calculated as follows

= Plowback ratio × ROE

= 0.6 × 0.1

= 0.06×100

= 6%

Hence the growth rate is 6%

(B) The P/E ratio can be calculated as follows

= 1-0.6/0.08-0.06

= 0.4/0.02

= 20

Hence the P/E ratio is 20

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Answer:

D) does not know the products well enough to sell them.

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The customers constantly bring up objections because they are not satisfied with the explanations Tracy is giving them.

The scenario would probably have been different if she knows the products well enough to sell them so if any objections are raised by the customers, she can easily calm their fears and explain exactly how each computer would perform under different circumstances.

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3 0
3 years ago
Charles is a consultant living in a rented apartment. Which of the following statements would represent a logical position for h
miskamm [114]

C. Charles should forgo renter's insurance if the premiums will quickly overtake the value of his belongings.

Renter's insurance is a useful and valuable tool to protect tenants against loss  or damage of  their property, and is a wise purchase in most cases. However, if you are paying more every month in your insurance premiums than the total value of the goods you are protecting, the insurance may no longer be worth the cost.

3 0
3 years ago
The growth of the drug industry in canada represents which shift in organized crime? why is this important
Harrizon [31]
As the drug industry in Canada grow, Drugs that usually could be obtained only through criminal organization now can be easily obtained over the counter (as long as the requirements are met)
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8 0
3 years ago
Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.0
rewona [7]

Answer:

Her nominal wage increase by: (12.48/12)-1= 0.04= 4%

Her real wage decreased by: 4% - 7$= -3%

Explanation:

Giving the following information:

Ginny currently earns a (real or nominal) wage of $12.00 per hour. Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 turned out to be 7%, not 4%.

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Her real wage decreased by: 4% - 7$= -3%

5 0
3 years ago
Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos
kumpel [21]

Answer:

the gross profit reported is $1,518

Explanation:

The computation of the amount of gross profit that reported is shown below:

But before that the gross profit percentage is

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Hence, the gross profit reported is $1,518

8 0
3 years ago
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