The internal growth rate is 7.97% Approximately
The internal growth rate is computed as shown below:
= ROA x ( 1 - payout ratio ) / [ 1 - ( ROA x payout ratio) ]
= 0.09 x ( 1 - 0.18 ) / [ 1 - ( 0.09 x 0.18 ) ]
= 0.0738 / 0.9262
= 7.97% Approximately
An internal growth rate (IGR) is the best degree of growth potential for a commercial enterprise with out acquiring outdoor financing. A firm's most inner increase rate is the extent of business operations that may maintain to fund and grow the corporation with out issuing new equity or debt.
The IGR assumes that operations can be entirely self-funded by way of the corporation's retained profits. In evaluation, the sustainable increase price (SGR) includes the effect of external financing, however the current capital structure is kept steady.
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Answer:
The correct answer to the following question will be Option D (The firm should expect the demand curve to shift to the left).
Explanation:
- In a competitive market only at the long-run rate are going down for the company as new competitors come in the market others for the company seeking to that the profit.
- Then if business reduces its cost certain company in the industry reduce too as they make limited benefits in that industry as well as for the effect of which quantity of going down and supply, therefore, reduce so companies production curve moves to the left.
The other choice is not per the specified scenario. And the response to the above seems to be the right one.
Answer:
people face trade offs
Explanation:
Because wants are unlimited and the resources used to satisfy those wants are limited, people have to face trade offs. these trades off are opportunity costs.
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
In this question, the wants are a cell phone or an amplifier. the resource is $200. If the amplifier is bought, the cell phone cannot be purchased. This is an example of a trade off
Answer: 40000
Explanation:
The physical units for conversion cost will be calculated as follows:
= Units completed and transferred out + (Equivalent units for conversion costs - Units completed and transferred out /Completion percentage)
= 32000 + (36000 - 32000 / 50% )
= 32000 + (4000/50%)
= 32000 + 8000
= 40000
