Answer:
The correct answer is 10.72% ( Approx.).
Explanation:
According to the scenario, the given data are as follows:
Debt ratio = 46.5%
Capital intensity ratio = 2.51 times
Profit margins = 21%
Dividend payout = 38%
Formula to calculate sustainable growth rate ae as follows:
Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)
where, Retention rate =(1 - dividend payout rate)
= (1-0.38) = 0.62
ROE = Profit margin × Total asset turonver × Equity multipler
= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)
= .21 × (1/2.51) × 1/(1-.465)
= .21 × 0.398 × 1.869
= 0.1562
=15.62%
So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)
= 0.096844 / 0.903156
= 0.1072
= 10.72% (approx.)
Hence, the correct answer is 10.72% (approx.).
I believe the answer is: different
The values of pesos from these spanish speaking countries are different depending on how good their performance in the market.
For example,
1000 mexican peso is equal to +/- 50 USD
1000 Argentine peso is equal to +/- 30 USD
Answer:
The kids in the movie were not acting they were actually scared.
Explanation:
Answer:
* The company’s degree of operating leverage: 1.38;
* The impact on net operating income of a 22% increase in sales: it will increase by 30.4%;
* New contribution format income statement:
Engberg Company
Contribution format income statement
Amount Percentage of sales
Sales $176,900 100%
Variable expenses 70,760 40%
Contribution margin 106,140 60%
Fixed expenses 24,000
Net operating income 82,140
Explanation:
* The company’s degree of operating leverage = Contribution / profit = 87,000/63,000 = 1.38
* The impact on net operating income of a 22% increase in sales is calculated as: Degree of operating leverage x % changes in sales revenue = 1.38 x 22% = 30.4%.
* new contribution format income statement is shown in the answer part.
Your answer is a because I know this from school