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dexar [7]
3 years ago
5

The newspaper reported last week that Bennington Enterprises earned $34.07 million this year. The report also stated that the fi

rm’s return on equity is 16 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate?
Business
1 answer:
Arada [10]3 years ago
6 0

Answer:

Earning growth rate will be 12 %

Explanation:

We have given that Bennington Enterprises earned $34.07 million this year.

Return equity = 16 % = 0.16

Retained earning = 75 % = 0.75

We have to find the firm's growth rate

We know that growth rate is given by

Growth rate = Return on equity × retained earning

So firm's growth rate will be equal to = 0.16×0.75 = 0.12

Therefore the earning growth rate will be 12 %

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ABC Bonds are currently priced at $1050 with 8 years until maturity. If the coupon is 6% and the bond pays interest semi-annuall
ohaa [14]

$1,000 is the yield to maturity for an investor that purchases the bond today

<h3>What is bond ?</h3>

A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.

Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.

To know more about bond  follow the link:

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4 0
1 year ago
On January 1, a machine with a useful life of five years and a residual value of $80,000 was purchased for $240,000. What is the
Alex17521 [72]

Answer:

$57,600

Explanation:

The computation of the depreciation expense under the Double-declining balance method is shown below:

First we have to find the depreciation rate which is shown below:

= 1 ÷ useful life

= 1 ÷ 5 years

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $240,000, so the depreciation is $96,000 after applying the 40% depreciation rate

And, in year 2, the $144,000 × 40% = $57,600

The $144,000 is come from

= $240,000 - $96,000

= $144,000

3 0
3 years ago
Swizer Industries has two separate divisions. Division X has less risk so its projects are assigned a discount rate equal to the
alexira [117]

Answer:

B. Accept X and reject Y

Explanation:

Here are the options

A. Accept both X and Y

B. Accept X and reject Y

C. Reject X and accept Y

D. Reject both X and Y

E. The answer cannot be determined based on the information provided

the project should be accepted if the WACC of the department is less than the rate of return on the project

WACC = weight of equity x cost of equity + weight of debt x after tax cost of debt  

weight of debt = D / (D + E) = 0.45E /1.45E

weight of equity = E / (D + E) = E / 1.45E

WACC = ( 0.45E /1.45E) x (5.1)  + ( E / 1.45E) x 14.7

= 5.1 x (0.45/1.45)  + 14.7 x (1/1.45)

=1.583 + 10.138

11.72%

Division X's WACC = 11.72% - 0.5% = 11.22%

Division Y's WACC = 11.72% + 1% = 12.72%

The rate of return of Division Y's project is 12.3%. Thus, division Y's project should not be accepted

the rate of return of Division X's project is 11.64%. Thus, division X's project should be accepted

4 0
3 years ago
From the list below, select the items that are classified as a materials activity. Raw materials used unanswered Raw materials b
prohojiy [21]

Answer:

  • Raw materials beginning inventory
  • Raw materials purchases

Explanation:

Materials activities refer to those that have to do with the acquisition of raw materials and the amount of materials left. The production of goods adds raw materials from materials activity.

The Raw materials beginning inventory tells of how much material is left over from the last production cycle while raw materials purchases are acquisitions of raw materials. Both are therefore material activities.

5 0
3 years ago
Read 2 more answers
How much does it cost to open a chick-fil-a franchise?.
PIT_PIT [208]

Answer: between $342,990 and $1,982,225, including a $10,000 franchise

Explanation:

4 0
2 years ago
Read 2 more answers
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