The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fas
1 answer:
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Answer: The number of shares outstanding is approximately 170702.32 shares.
We have :
EPS $0.43
Net Income $73,402
The formula for computing EPS is
Substituting the values from the question in the formula above we get,
Answer:
The maximum growth rate to my calculations is 8.32%, since it is closer to option E), I´d choose E) 8.37%
Explanation:
Hi, in order to find the growth rate given all the info of the problem, we need to use the following formula.
Where:
g = growth rate
b=retention ratio
R = return on equity
Since R = Earnings / Equity, and our dividend payout ratio (equals to 1 - b)our fromula changes to:
So, everything should look like this:
So, the growth rate is equal to 8.32% but this option is not available, therefore we´ll go for the closest one, that is E) 8.37%.
Best of luck.