1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veronika [31]
3 years ago
14

High Flyer, Inc., wishes to maintain a growth rate of 16.75 percent per year and a debt–equity ratio of 1.05. The profit margin

is 4.5 percent, and total asset turnover is constant at 1.05.
What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Dividend payout ratio %
What is the maximum sustainable growth rate for this company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Sustainable growth rate %
Business
1 answer:
mylen [45]3 years ago
8 0

Answer:

The dividend payout ratio is -48.12%

The Sustainable growth rate is 16.74%

Explanation:

In order to calculate the dividend payout ratio we would have to calculate the following formula:

growth rate=(ROE x dividend payout ratio ) / [ (1 - (ROE x dividend payout ratio))

To calcuate the ROE we would have to use the following formula:

ROE=Profit margin x Total asset turnover x Equity multiplier

ROE=0.045 x 1.05 x (1 + 1.05)

ROE=0.0968625

Therefore, dividend payout ratio would be calculated as follows:

0.1675 = (0.0968625 x dividend payout ratio) / [ 1 - (0.0968625 x dividend payout ratio))

0.1675 = 0.0968625 dividend payout ratio / (1 - 0.0968625 dividend payout ratio)

0.1675 - 0.016224469 dividend payout ratio = 0.0968625 dividend payout ratio

0.1675 = 0.113086969 dividend payout ratio

dividend payout ratio=1.481160928

Therefore, dividend payout ratio=1-1.481160928

dividend payout ratio=-48.12%

To calculate the Sustainable growth rate we would have to calcilate the following formula:

Sustainable growth rate=ROE*b/1-ROE*b

Sustainable growth rate=0.0968625*1.481160928/1-0.0968625*1.481160928

Sustainable growth rate=0.14346895/1-0.14346895

Sustainable growth rate=0.14346895/0.85653105

Sustainable growth rate=16.74%

You might be interested in
A company has two products: standard and deluxe. The company expects to produce 37,775 standard units and 63,640 deluxe units. I
jarptica [38.1K]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the activity rates for each cost pool:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Activity 1= 103,850 / (2,500 + 5,250)= $13.4 per unit of activity

Activity 2= 106,000 / (4,500 + 5,500)= $10.6 per unit of activity

Activity 3= 95,120 / (3,000 + 2,800)= $16.4 per unit of activity

<u>Now, we can allocate overhead to Standard:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Standard:

Activity 1= 13.4*2,500= $33,500

Activity 2= 10.6*4,500= $47,700

Activity 3= 16.4*3,000= $49,200

Total allocated costs= $130,400

<u>Finally, the unitary cost:</u>

Unitary cost= 130,400 / 37,775

Unitary cost= $3.45

7 0
3 years ago
Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of coffee if these eve
kiruha [24]

Answer:

Please find the required diagram in the attached image

Explanation:

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

As a result of the study, there would be an increase in the demand for coffee. This would shift the demand curve to the right. As a result, there would an increase in equilibrium price and quantity

7 0
3 years ago
6. Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may re
anygoal [31]

Answer:

generic goods.

Explanation:

Generic goods -

It refers to the type of packaging , where only the type of product present inside the packet is written , rather than specifying the name of the brand , is referred to as generic goods .

For example ,

Mentioning the package with rice , cola , beans etc. , is the example of generic food .

Hence , from the given scenario of the question ,

The correct answer is generic goods .

4 0
3 years ago
Lori prefers to purchase cosmetics at self-service drug stores as saleswomen at cosmetic counters in department stores intimidat
Stells [14]

Answer: Social comparison

Explanation:

 The social comparison is one of the important theory in the society which state that the individual person can determine their own personal and the social importance by comparing their own qualities with the other people. The coal comparison is mainly proposed by the Leon festinger in the year 1954.

 According to the given scenario, the self evaluation is basically conducted by the Lori is best illustrate example of the social comparison as people generally compared themselves with the other people for the purpose of self motivation and improvement.  

Therefore, Social comparison is the correct answer.

8 0
3 years ago
What happens to the price and the quantity bought and sold in the cocoa market if countries producing cocoa experience a drought
Rashid [163]

Answer: Supply of cocoa will fall; Demand rises; Price increases.

Explanation:

A drought is when there is little or no rainfall in a particular area. When countries that are producing cocoa experience a drought, this will lead to a reduction in the supply of cocoa as there will be lesser cocoa available for farmers to supply.

Then, due to the new study which is released demonstrating the health benefits of cocoa, this will lead to an increase in the demand for cocoa. The demand will rise and since there's increase in demand and reduction in supply, the price will rise.

4 0
3 years ago
Other questions:
  • After receiving the seller’s transfer disclosure statement, buyer clark rivers is not satisfied that all has been revealed. he’s
    13·1 answer
  • Which payment type is the best if you are trying to stick to a budget
    14·1 answer
  • The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year. budget defici
    9·1 answer
  • One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs. Which aspect of financ
    10·2 answers
  • (a) (i) Define the term "Green Revolution" as used during the period 1945 to 1985. (ii) Explain the principal agricultural pract
    9·1 answer
  • Describing a topic, idea, or concept you find so engaging that it makes you lose all track of time. Why does it captivate you? W
    8·1 answer
  • Boss Enterprises currently sells its products for per unit. Management is contemplating a ​% increase in the selling price for t
    7·1 answer
  • Allocative efficiency is concerned with:
    14·1 answer
  • a) Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressu
    8·1 answer
  • Cash markets are also known as Group of answer choices speculative markets spot markets dollar markets derivative markets
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!