Answer:
0.0678
Explanation:
Given:
Profit margin = 6% = 0.06
Dividend payout ratio = 37% = 0.37
Total asset turnover = 1.2
Equity multiplier = 1.4
Required:
Find the sustainable rate of growth.
First find the return on equity using the formula: Equity Multiplier × Assets turnover × Profit margin
= 1.4 * 1.2 * 0.06
= 0.1008
Return on equity = 0.1008
To find the sustainable growth, we have the following:
Therefore, sustainable growth = 0.0678
Answer:
$200,000
Explanation:
The computation of the amount that should be reported as an expense is given below;
= Market appraisal + consulting fees + advertising + travelling to train employees
= $50,000 + $72,000 + $47,000 + $31,000
= $200,000
Answer:
Joe should recommend a VPN.
Explanation:
A VPN is a Virtual Private Network that allows you to create a secure connection to another network over the Internet. So when a different server is trying to connect with your server, the VPN will encrypt the connection so that only public information is shared. It can see the server address rather than than your address and encrypt data.
Joe can use this facility to protect the company's information from being publicly accessible. VPNs can be used to protect your data from servers connected through different WiFi connections.
Answer:
14.10%
Explanation:
The calculation of expected return on this stock is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.28 × (12% - 4.5%)
= 4.5% + 1.28 × 7.5%
= 4.5% + 9.6%
= 14.10%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium
hence, the expected rate of return is 14.10%
Answer:
$7.05
Explanation:
Given that
Direct labor = $3.50 per unit
Direct material = $1.25 per unit
Variable overhead = $41,400
Total fixed overhead = $150,000
Produced units = 18,000
The computation of total product cost per unit under variable costing is shown below:-
Total Variable overhead = Variable overhead ÷ Produced units
= $41,400 ÷ $18,000
= $2.3
Total product cost per unit = Direct labor + Direct material + Total variable overhead
= $3.50 + $1.25 + $2.3
= $7.05