Answer:
10.85 percent
Explanation:
Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152
Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent
The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
Answer:
What do capital controls prevent?
Speculators from rushing into and out of a country's market and
disrupting its economy.
Explanation:
Capital control entails when a body that regulates money in a country controls the cash inflow and outflow
You must consider both consequences, the positive and the negative. Then you must think of a way that you will have a win-win situation or just do the compromising to be able to solve the problem and have a faster solving process.
Answer:
13.86%
Explanation:
34% was invested into stock X with an expected return of 11%
22% was invested into stock Y with an expected return of 18%
44% was invested into stock Z with an expected return of 14%
The expected return on the portfolio can be calculated using the formula below
Expected return= Sum of ( weight of stock×return of stock)
= (0.34×11%)+(0.22×18%)+(0.44×14%)
= 3.74+3.96+6.16
= 13.86%
Hence the expected return on the portfolio is 13.86%
