1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J
Fed [463]

Answer:

C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.

Explanation:

A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.

Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.

In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.

6 0
3 years ago
Purchasing power is a producer's ability to buy goods and services. answer true false
Black_prince [1.1K]
Having money with which to buy goods and services is called purchasing power
6 0
3 years ago
Communication with the public and employees should be overseen by the director of PR. The duties of the crisis team should be di
Veseljchak [2.6K]

Answer: The third option (option C) is the right answer.

Explanation:

The paragraph which has the best coherence is option C. This is because in the case of the third option, it explains that the flow of ideas is constant from one sentence to another.

The first sentence serves as an introduction which talked about the reasons why duties should be divided based on each member’s expertise. The sentences moved smoothly and also logically from one sentence to another sentence. An example is the sentence that “if your company does not have a public relations executive…..”. This should logically proceed the sentence that says that communication ought to be overseen by the director of PR.

This shows that the third option possesses a consistent and logical train of thought as well.

3 0
3 years ago
Which of the following actions would likely raise life insurance premiums?
Dafna1 [17]
Living a non-smoker its b
6 0
3 years ago
Read 2 more answers
I need HELP!!!!!!!!!!
Brrunno [24]
Answer: D i think

Explanation:
7 0
2 years ago
Read 2 more answers
Other questions:
  • You are the manager of a firm producing green chalk. The marginal product of labor is:
    15·1 answer
  • Within a(n) _____, there is a level of economic integration that involves the use of a common currency, harmonization of members
    8·1 answer
  • Mr. and Mrs. Haley are purchasing beachfront property in an upscale development. The home comes equipped with all furnishings. T
    6·1 answer
  • National income accountants can avoid multiple counting by1. only counting intermediate goods. 2. only counting final goods.3. i
    9·1 answer
  • If common equity financing is 60% of the optimal capital structure and the existing limit of internal equity is $500,000. Solve
    15·1 answer
  • Inventing a new soft drink - what would be the input - the conversion, and the output?
    15·2 answers
  • Suppose another firm found a way to offer IKEA’s customers (young buyers interested in stylish furniture at low cost) additional
    6·1 answer
  • Plumber Corporation acquired all of Socket Corporation's voting shares on January 1, 20X2, for $482,000. At that time, Socket re
    14·1 answer
  • What does a money market account offer that a certificate of deposit (CD)
    7·1 answer
  • Freè 30 Points just answer this simple question!!! Im Moving Next Week on the 1st, what is the most efficient way to unpack and
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!