Answer: 8.05%
Explanation:
Given that,
Earnings per share (EPS) = $3.98
Dividends per share(DPS) = $1.35
Return on assets(ROA) = 14.6%
Return on equity(ROE) = 12.2%
Plowback Ratio = ![\frac{EPS - DPS}{EPS}](https://tex.z-dn.net/?f=%5Cfrac%7BEPS%20-%20DPS%7D%7BEPS%7D)
= ![\frac{3.98 - 1.35}{3.98}](https://tex.z-dn.net/?f=%5Cfrac%7B3.98%20-%201.35%7D%7B3.98%7D)
= 0.66
Therefore,
sustainable rate of growth = ROE × Plowback Ratio
= 12.2% × 0.66
= 0.0805
= 8.05%
<span>Classical economists felt this way because of the idea of 'interest rate flexibility'. This means that the classical economists believed in the idea that the economy would even itself out, or that the economy was 'self-regulating'. This lends itself to the idea that saving would be equal to investment because it does not take into consideration any shift in the economy.</span>
<span>It functions like a business but uses the money it makes to fund the cause identified in its charter. The student organization does not make any profits on their activities and instead donates them to charity.</span>
Answer: It will reduce in demand
Explanation: If you raise a price customers are less likely to buy it when it’s at a higher price