Answer:
Debt ratio = 0.77 (to 2 decimal places)
Explanation:
The debt ratio of a company is the ratio of the total debt owed to the total assets owned by the company. It is represented mathematically as:
Debt Ratio = Total Debt ÷ Total asset
Total Debt = current liabilities + longminusterm liabilities
Total Debt = 403 + 190 = $593
Total assets = $772
∴ Debt ratio = 593 ÷ 772 = 0.77 (to 2 decimal places)
note that current assets are not used in the calculation because it is a subset of total asset.
Answer:
C) below the equilibrium market price.
Explanation:
An example of a price ceiling would be the government setting the price of sugar below the equilibrium market price.
Answer: 12.6 %
Explanation: The rate of growth that a company expects to maintain for a long term is called sustainable growth rate. It is denoted by G. Sustainable
growth rate helps the analysts to determine at what stage the company is in its life cycle.
.
FORMULA :-
GROWTH = Retention ratio * return on equity
= ( 1 - Dividend payout ratio) * return on equity
= 0.9 * 0.14
= 12.6 %