Payout ratio is 11:20
<u>Solution:
</u>
Given, Debt = 70%
Equity = 30%
Capital Budget = $3,000,000;
Net Income = $2,000,000;
To find: the payout ratio
Equity retained = Project value Percentage of equity in capital structure
Equity retained =
Net Income=$2,000,000
Equity retained=900,000
Earnings Remaining=$1,100,000
Substitute $1,000,000 for project value and 55% for percentage of equity in capital structure
Payout = 55%
To make one percent a fraction, the percentage sign will fall and the sum will be over 100
Reduce to get the simplest form
5 is the largest common factor, so divide the numerator and denominator by 5
. Hence its 11:20
Answer:
Total costs = $4,850.
Please refer to the attached for the answered table.
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As a result of this model of planning, we will have inventory on hand in some periods and we will run partially or completely out of stock in others. But because the production unit is aware of their production targets , overtime will be zero and there will be no need for subcontracting.
However delayed order fulfillment will be made up for at additional costs as in the example we are solving. This provisions must be made for such eventualities.
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<span>The relevant factors in computing depreciation do not include market value. They do include original cost, salvage value, the depreciation method, and the useful life. We use the original cost instead of market value when computing depreciation.:</span>
Answer: Honda could get a lot of notice as innovative company
Explanation:
From the question, we are informed that Honda's new electric unicycle is very unique and that it is steered by the rider leaning, computer stabilized through control of its single crabbing wheel.
It also has a range of about 3 miles at 3 miles per hour, takes n hour to recharge and only weighs 25 pounds, so it can be carried while the cost would be about $2000.
The only good reason to produce this would be that people and every other organization will notice Hinds as being a company that is innovative. This will be advantageous for its brand.