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Fynjy0 [20]
4 years ago
5

Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia

bilities of $37,200, long-term debt of $123,800, and net working capital of $16,700, and net fixed assets of $391,500. No external equity financing is possible. What is the internal growth rate?
Business
1 answer:
erastova [34]4 years ago
7 0

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

                   = $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

                                        = $53,900

total assets = current assets + net fixed assets

                   = 53,900 + 391,500    

                   = 445,400

Then:

ROA = 53,900/445400

        = 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

                                 = 0.041763/0.958237

                                 = 4.36%

Therefore, The internal growth rate is 4.36%

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Explanation:

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Here, Ellen is always scheduling, directing and gives explicit standard of performance shows she is high on Delegating duties.

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3 years ago
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He’s a good researcher, reader, hard worker.
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From past records it is known that 10% of items from a production line are defective. If two items are selected at random, what
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Answer:

0.2

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3 years ago
Hydro Systems has bonds outstanding with a face value of $1,000, 13 years to maturity, and a coupon rate of 6.5 percent, paid an
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Answer:

a. 5.87 percent

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The existence of ending Work In Process Inventory necessitates the use of the 5minusstep process costing procedure. true or fals
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Answer:

The statement is: True.

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The Work In Progress (WIP) Inventory represents the sources needed during the production of a good. While calculating costs for those sources it is necessary to follow the 5-steps of process costing which are the following:

<em>1)</em><em>  Determine the flow of units generated. </em>

<em>2)</em><em> Adjust the inventory to calculate the equivalent units. </em>

<em>3)</em><em> Identify the total cost. </em>

<em>4)</em><em> Calculate the average cost per equivalent unit. </em>

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