Answer:
sorry just answering to get points
Explanation:
sorry just answering to get points
Answer:
7.514%
Explanation:
Given that,
Internal growth rate = 7.1%
Dividend payout ratio = 25% per year
Total assets to sales ratio = 0.85
ROA:
= Internal growth rate ÷ [(1 - payout ratio)(1 + internal growth rate)]
= 7.1% ÷ [(1 - 25%)(1 + 7.1%)]
= 0.071 ÷ (0.75 × 1.071)
= 0.071 ÷ 0.80325
= 8.84%
ROA = Net income ÷ Total assets
Now, we multiply and divide right hand side by sales
ROA = (Net income ÷ sales) ÷ (Total assets ÷ sales)
= (Net income ÷ sales) × (sales ÷ total assets)
8.84% = Profit margin × (1 ÷ 0.85)
Profit margin = 8.84% × 0.85
= 7.514%
Prime rate is (a) the best interest rate that banks offer their most creditworthy customers.
A prime rate is decided by the bank to lend money to its customers where the credit giving is decided on the basis of the credit history and points on the customers formally known as the credit rate of investment.
It totally depends upon the allowance of credit by financial institutions and then the payment made by the loan taking customers within a stipulated time frame.
To learn more about prime rate here,
brainly.com/question/28235888
#SPJ1
Answer:
The company degree of operating leverage is 4
Explanation:
The computation of the degree of operating leverage is shown below:
= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)
= ($660,000 - $360,000) ÷ ($660,000 - $360,000 - $225,000)
= $300,000 ÷ 75,000
= 4
where,
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT
Conceptual skills refer to the ability to understand the relationship of parts to the whole.
