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uysha [10]
2 years ago
8

The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and the payout ratio is 30 perce

nt. What is the internal growth rate
Business
1 answer:
Snezhnost [94]2 years ago
6 0

Answer:

21.29%

Explanation:

The computation of the internal growth rate is shown below:

But before that we need to determine the following calculations

Debt equity ratio js

= debt ÷ equity

The  debt is 0.6 of equity

So,

= 0.6 × $8,600

= $5,160

Now

Total assets = Total liabilities + Total equity

= $8,600 + $5,160

= $13,760

Return on assets = Net income ÷ Total assets

= $3450 ÷ $13760

 = 0.2507

Now  as we know that

Retention ratio = 1 - payout ratio

= 1 - 0.3

= 0.7

And, finally

The Internal growth rate is

= (Return on assets × Retention ratio) ÷ [1 - (Return on assets  × Retention ratio)]

= (0.2507 × 0.7) ÷ [1 - (0.2507 × 0.7)]

= 21.29%

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Answer:

TRUE

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The variance of a sample of 121 observations equals 441. The standard deviation of the sample equals 1.91. 231. 21. 11.
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Explanation:

Given:

                                 variance of sample (S^{2}) = 121

                                 no, of observations made = 441

                                         standard deviation = ?

By using the formula:

                          Standard deviation (S) = \sqrt{variance}

                                                                 = \sqrt{S}

                                                                 = \sqrt{121}

                                                                 = 11

Hence the standard deviation is equal to 11.

 

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