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noname [10]
3 years ago
5

The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,500 Current asse

ts $ 12,000 Debt $ 16,500 Costs 8,400 Fixed assets 29,000 Equity 24,500 Taxable income $ 6,100 Total $ 41,000 Total $ 41,000 Taxes (40%) 2,440 Net income $ 3,660 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
Business
1 answer:
Katena32 [7]3 years ago
8 0

Answer:

0.1046 or 10.46%

Explanation:

The computation of the sustainable growth rate is shown below:

The Sustainable growth rate of the firm is

= Return on Equity × ( 1 - Dividend Payout Ratio )

where,

Dividend Payout Ratio = 30%

And,

Return on equity is

= Net Income ÷ Shareholder 's equity

= $3660 ÷ $ 24,500

= 0.14938

So,  

Sustainable growth rate is

= 0.14938 × (1 - 30%)

= 0.1046 or 10.46%

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(05.01 MC) This quotation best supports which of the economic theories of John Maynard Keynes? A. Businesses and jobs rely most
tankabanditka [31]

Answer:

These two statements are correct:

A. Businesses and jobs rely most strongly on consumer demand.

B.Government regulation is necessary to stabilize the economy.

Explanation:

The first statement is correct because John Maynard Keynes that demand was the most important side of the economy, not supply. This is why his policies are sometimes referred to as "demand-side economics", while the policies of many of his detractors, such as Milton Friedman, are referred to as "supply-side economics".

The second statement is also correct because Keynes believed that a market economy was naturally subject to business cycles: cycles of boom and bust that could either benefit millions, or harm millions. Keynes thought that the government should regulate the economy in order to lessen the effect of those cycles.

5 0
3 years ago
Read 2 more answers
Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life an
BartSMP [9]

Answer:

$2914

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense

3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value  

4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($9,920 - $1240) / 5 =  $1736

Accumulated depreciation = 1736 x 2 = $3472

Book value at the beginning of 2021 = 9920 - 3472 = $6448

Depreciation expense in 2021 = (6448 - 620) / 2 = $2914

5 0
3 years ago
Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical method for computing probabil
nlexa [21]

Answer:

correct option is b.0.50

Explanation:

given data

computer shop = 100 customers

purchased computer = 25

solution

we know that past data does not affect the probability of next outcome

so when they buying computer or net

so here

probability of customer buy computer is = \frac{1}{2}  = 0.5

and

probability of customer not buy computer is = \frac{1}{2}  = 0.5

so here chance of buying as they buying or not buying is 50 %

so correct option is b.0.50

3 0
3 years ago
We've talked a lot about "fixed" and "variable" expenses. We've talked about the way these expenses impact your budget and your
eimsori [14]

Answer:c

Explanation:

6 0
3 years ago
The owner of Hanson Manufacturing is considering the idea of establishing a smoke-free workplace and instigating an incentive pl
klemol [59]

Answer:

$2000

Explanation:

According to CDC research, each employee who smokes costs his or her organization approximately $2000 per year due to reasons such as;

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Therefore, for each smoker who quits smoking, Hanson Manufacturing will gain approximately $2000 in productivity.

7 0
3 years ago
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