1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
TEA [102]
3 years ago
5

A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnove

r ratio of .75 and debt of $10,000. What is its sustainable growth rate?
Business
1 answer:
Degger [83]3 years ago
5 0

Answer:

Sustainable Growth Rate: 2.5%

Explanation:

Sustainable growth rate is calculated by multiplying return on equity with retention ratio.

Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.

Growth rate = Retention ratio * return on equity

Retention ratio = 50%

Return on equity = Net profit available for distribution / Opening equity

Return on Equity = (25,000 * 10%) / 50,000

Return on Equity = 5%

Growth Rate = 5% * 50%

Growth Rate = 2.5%

You might be interested in
explain prefix increment operator vs. postfix increment operator, give an example in Java code, explain what's happening at the
AveGali [126]
<h2>Pre-Increment increments the value immediately, Post increment increments the value only after executing the entire line.</h2>

Explanation:

class PrePostIncOperator {

   public static void main(String[] args){

         int x=5;    

         System.out.println(x++);          

         System.out.println("\n"+ ++x);    

        }

   }

Let us understand the program.

int x = 5 => Initializes the value of 5 to the variable x

System.out.println(x++);  This is the post increment operator. The value of x gets incremented only after printing the value. That is first System.out.println(x) will be executed and then the increment operator takes place once it finds the ";" that is the end of the statement. The memory which holds the value of x is changed only after executing the statement.

System.out.println("\n"+ ++x);     Here the value gets incremented and immediately assigns to the memory.

8 0
3 years ago
Sport organizations now seek to make money from “rights fees” paid by
xeze [42]
<span>Sport organizations now seek to make money from “rights fees” paid by: </span>the electronic media that want to sell sport audiences to advertisers.

In every sports match, there is usually a time slot when the match is halted before moving to the next round. This time slot is utilized by the sports organization to be used as an advertisement and will be given to the company with the highest bid.
3 0
3 years ago
Compare and contrast different types of source documents
suter [353]

Answer:

Bank Statements.

Payroll Reports.

Invoices.

Leases & Contracts.

Check Registers.

Purchase Orders.

Deposit Slips – not included on a bank statement.

Check Copies – not included on a bank statement

Explanation:

4 0
2 years ago
Covenants represent: A. The property that a company pledges to guarantee repayment B. Terms and conditions set forth in a lendin
Len [333]

Answer:

D. Promises the company makes to the creditor

Explanation:

  • A covenants is a promise at the time of indenture or any other sort of the formal debt agreement that the certain activity will or will not be carried out  and a certain threshold will be met.
  • Thus is a form of conditioning in commerce which stops the buyers for  taking any certain decision and they can financial, the information, ownership, and affirmative and the negative or positive covenant.
3 0
3 years ago
How does it help the economy that banks offer incentives (like interest payments, deposit insurance, etc.) to get customers to d
Assoli18 [71]

the answer is: it helps prevent people from keeping their cash out circulation

After collecting the money from the saver, Banks will provide loans to other business who needs a capital injection and put an interest rates from the total loan. This is the main way Banks obtain their profit.

This means that <em>The more cash kept out of circulation , the more profit the Banks can potentially get.</em>

Because of this, they offers various incentives for the saver to kept their money in the banks rather than using it somewhere else through interest, deposit insurance, maximum withdrawal, etc)

3 0
3 years ago
Read 2 more answers
Other questions:
  • Rachel's Designs has 1,100 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    9·1 answer
  • Quinlan-Cohen, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end
    6·1 answer
  • Drag the tiles to the correct boxes to complete the pairs. Match the scenarios with terms related to financial aid. Entrance cou
    9·1 answer
  • In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, m
    12·1 answer
  • A company produces 100 cars in the year 2017 but only manages to sell 90 of the cars. In the year 2018 they sell the 10 cars tha
    8·1 answer
  • you learned a variety of fundamental economic concepts. Identify two of the following principles, and apply them to the real-wor
    7·1 answer
  • Which of the following is a disadvantage of a sole proprietorship?
    10·1 answer
  • When the perpetual inventory system is used, the inventory sold is debited to a.Supplies Expense b.Cost of Goods Sold c.Sales d.
    14·1 answer
  • Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,0
    13·1 answer
  • Sourcing a supply from a small, women-owned business is an example of a corporate social responsibility action to?
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!