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.).
Answer:
the required rate of return i r=0.13%
Explanation:
In order to calculate the required rate of interest in the case of a perpetual preferred stock we will use the following formula:
P(p) = D(p) / r
where P(p) is the preferred price of the stock, D(p) is the preferred dividend price and r is the required rate of interest.
This gives us the following values:
30 = 4 / r
r = 4 / 30
r = 0.13%
Answer:
Special request income 33,000
Explanation:
special request:
3000 units x $39 = 117,000
variable cost:
3000 units x $28 = 84,000
<u>Contribution margin 33,000</u>
special cost: <em>none</em>
additional fixed cost: <em>none</em>
Special request income 33,000
Notice:
Non additional shipping or setup cost is request for the order.
Non increase in fixed cost due to excess capacity.
If any of this concept do inccur in additional cost, it should be relevant as well in the calculations.
Let's say that gasoline is subject to a $0.50 excise tax in your city. This tax affects both buyers and sellers equally.
Depending on the elasticity of demand and supply, a tax's burden is split between purchasers and sellers. Depending on their alternatives, buyers' and sellers' desire to exit the market is represented by elasticity. The relationship between supply and demand price elasticity and tax incidence is also possible. The tax burden is placed on the purchasers when supply is more elastic than demand. The cost of the tax will be borne by the producers if demand is more elastic than supply.
Learn more about the burden of this tax here.
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ISO 9001:2008 is the most comprehensive standard as it provides a set of requirements for a quality management system for all organizations, both private and public.
<h3>
What is ISO 9001:2008 Quality management systems ?</h3>
It aims to increase customer satisfaction through the effective application of the system, including processes for continuous system improvement and the assurance of conformity to customer and applicable statutory and regulatory requirements. The ISO 9001:2008 standard outlines the specifications for a quality management system where a company must prove its capacity to consistently deliver a product that complies with customer and relevant legal and regulatory criteria.
No matter the type, size, or type of product offered, all requirements of ISO 9001:2008 are generic and intended to be relevant to all enterprises.
Any ISO 9001:2008 requirement(s) that cannot be applied because of the nature of the business or the product might be excluded.
When exclusions are made, claims of conformity to ISO 9001:2008 are not acceptable unless they are restricted to Clause 7 requirements and do not affect the organization's capacity or obligation to deliver a product that complies with the needs of the customer and any applicable legal and regulatory requirements.
To learn more about the, ISO 9001:2008 Quality management systems visit:
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