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inn [45]
3 years ago
15

Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger ha

s a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Business
1 answer:
ohaa [14]3 years ago
3 0

Answer:

Hornberger plows back 22.72% of its earnings into the firm.

Explanation:

Plowback ratio fundamental analysis ratio that measures how much earnings are retained after dividends are paid out.

We can use the relationship g = ROE × b to find the plowback ratio (b).

The growth rate implied by the recent dividend and the expected dividend is estimated using the equation, D1 =  D0 × (1 + g)

$2.05 = $2.00 × (1 + g)

$2.05 - 2.00 = 2.00g

0.05 / 2 = g

g = 2.5%

Then  according to the equation (b)

2.50% = 11.00% × b

b = 2.50%/11.00%

b = 22.72%

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At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year,
Shtirlitz [24]

Answer:

change in net working capital = $21,903

Explanation:

given data

beginning current assets = $121,306

beginning current liabilities = $124,509

end of the year current assets = $122,418

end of the year current liabilities = $103,718

solution

we get here working capital at beginning that is express as

working capital = Current assets - current liabilities    ......................1

put here value we get

working capital = $121,306 - $124,509  

working capital = -$3203  

and now we get here working capital for end of year that is

working capital = Current assets - current liabilities    ......................2

working capital = $122,418 - $103,718

working capital =  $18,700

so now we can get change in net working capital that is difference between   beginning and ending working capital

change in net working capital = $18,700  - (-$3,203)

change in net working capital = $21,903

8 0
3 years ago
A major reason for studying Economics is to gain an understanding of how a nation can best choose to use its ___________ and how
maria [59]

Answer:

Scarce resources.

Explanation:

A major reason for studying Economics is to gain an understanding of how a nation can best choose to use its scarce resources and how we must make rational decisions in order to move toward a higher standard of living for all. Some of these scarce resources include money, time, land, labor, capital and entrepreneurship. If these resources are not well managed, it usually results in an economic downturn, recession and inflation which are typically a negative factor for good standards of living for the people living in the particular country.

Hence, a proper allocation of scarce resources would improve the standards of living in a country.

3 0
3 years ago
Accounting question, please help
dangina [55]

Answer:

Accrual basis.

Explanation:

The accrual basis of accounting refers to the accounting method where by revenues are recognized on the profit and loss statement when they are realized and not when the money is received.

8 0
2 years ago
You own a large company and would like to issue bonds for $12 million to pay for the construction of a new manufacturing facilit
mars1129 [50]

Answer:

Find a bondholder or purchaser.

Explanation:

A bond issuer is someone who borrows money, in this example, my company.

In order to being able to financiate the construction of a new manufacturing facility for my company, I would have to find a bondholder (or some ofthem) that would lend me all the money, with its pertinent clauses.

I would have to fill those clauses, perhaps its money returning timeline, some finantial records, etc.

3 0
3 years ago
A generic brand of pre-packaged foods would best be marketed to which target market?
KiRa [710]

Answer:

The best answer to your question would be College students on a budgets

Explanation:

4 0
3 years ago
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