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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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Juli2301 [7.4K]

Answer:

False

Explanation:

Managing values in the workplace legitimizes managerial actions and strengthens the coherence and balance of the organization's culture. ETHICS IMPROVES RELATIONSHIPS BETWEEN EMPLOYEES AND THE WORK GROUPS. THEY ULTIMATELY HELP TO ENHANCE THE PRODUCTS' QUALITIES AND TO CULTIVATE GREATER SENSITIVITY TO THE IMPACT OF THE CORPORATION'S VALUES AND MESSAGES.

7 0
3 years ago
Unidice, an information technology firm, recently installed a new data system that provides seamless access to data. This data s
IceJOKER [234]

Answer:

first-mover advantage

Explanation:

First-mover advantage refers to the strategic advantage achieved by the first company that occupies a market segment. In order for a company to gain first-mover advantage it must be the first company to enter a market or at least be the first company to gain competitive advantage in that market.

Unidice is the first company to gain competitive advantage in the data system market because its processing speed is much higher than its competitors.

Sometimes you don't need to be the first one to enter a market, but you need to be the first one to do things right. For example, Microsoft introduced the Surface tablet almost a decade before Apple introduced the iPad, but Apple did it right, therefore Apple gained first mover advantage.

6 0
3 years ago
In the economy of Ukzten in 2010, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $2000, a
Blababa [14]

Answer:

I= $1,600

Explanation:

We have to clear Investment from the GDP formula:

GDP= Consumption (C)+ Investment (I)+ Government expenditure (G)+ Net exports (exports-imports)

I=GDP-G-C-(X-M)

The problem gives this information:

GDP: $10,000

G: $2,000

C: $6,000

X: $1,000

M: $600

I= $10,000-$2,000-$6,000-($1,000-$600)

Investment in 2010=$1,600

7 0
3 years ago
​Generally, the​ consumer's purchase decision will be to buy the most preferred​ brand, but two factors can come between the pur
GarryVolchara [31]

Answer:

The answer is: C) Attitude of others

Explanation:

The attitude of others refers to how much can another person´s attitude reduce what someone else prefers to buy. The extent of how much can a third party influence our purchasing decisions is based on:

  1. How intense is the third party´s negative attitude toward buying that specific product.
  2. How motivated we are to comply with the other person´s attitude.
3 0
3 years ago
Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 per
Sergio039 [100]

Answer:

(a) $33750000 (b) $11250000 (c) $22500000

Explanation:

Solution

(a) How much would Ziegler Inc. total income of operating  increase.

Now,

Units * (Cost of purchased from outside supplier - Variable cost)

Thus,

75000 * ($1350 - $900) = $33750000

(b) How much would the Instrument Division's operating income increase

Now,

The Units * (Cost of purchased from outside supplier - Transfer Price)

So,

75000 units * ($1350 - $1200) = $11250000

(C) How much would the Components Division's operating income increase?

Now,

Units * (Transfer Price - Variable cost)

75000 units * ($1200 - $900) = $22500000

3 0
3 years ago
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