<span>Your debt to income ratio determines how likely you are able to make your payments. When a high percentage of your available credit is been used, this can indicate that your money is overextended, and you may be more likely to make late and or missed payments.</span>
Answer:
£718,607
Explanation:
Annuities are investment opportunities that require an initial settlement and gives a series of returns of a fixed amount for a specific number of periods.
In simple terms, the question requires us to calculate the amount to be paid today (Present Value) of an annuity that pays £80,000 per year for the next 10 years.
To establish the [Present Value of the Annuity, the future Cash Flows must be discounted to the Present Value using the appropriate discount rate. In our case, we will use the annual effective interest rate of 2%.
Present Value = PMT × [ 1 - 1/(1+r)^n ÷ r ]
Where,
PMT = £80,000
n = 10
r = 2%
Therefore,
Present Value = £80,000 × [ 1 - 1 / (1.02) ^ 10 ÷ 0.02]
= £718,606.80 or £718,607
Conclusion :
She be willing to pay £718,607 today for the annuity.
A company's product is taking market share from another product in the same company. this process is known as Cannibalization.
<h3>What is Cannibalization in business?</h3>
In business, the phenomenon of Cannibalization occurs when a product that a company makes ends up taking the market share of another product that the same company makes.
The product that does the taking of market share is often a new product that has better qualities and so is sought after by the customers of the same company.
Find out more on product cannibalization at brainly.com/question/17772125
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Answer:
perceptions of value
Explanation:
In sales jargon, perceived value or value of perception is refers to the appraisal of the quality of a products or services by the consumers and their ability to satisfy their demands and expectations, particularly when compared with their competitors. Marketing experts attempt to influence the potential value of a company to customers by defining the qualities which render it advantageous to the rivalry.
Perceived value ultimately boils down to just the quality of a commodity that the customer is prepared to pay. Even a quick decision taken in the supermarket of a shop requires an appraisal of the potential of a company to satisfy a need and deliver value relative to other goods with different aliases.
Answer:
5.68%
Explanation:
The green giant has a 4% profit ratio
= 4/100
= 0.04
The dividend payout ratio is 30%
= 30/100
= 0.3
The total assets turnover is 1.2 times
The equity multiplier is 1.6
The first step is to calculate the return on equity
ROE= Profit margin×Total assets turnover×Equity multiplier
= 0.04×1.2×1.6
= 0.0768 or 7.68%
The next step is to calculate the Plowback ratio
b = 1-dividend payout ratio
b = 1-0.3
b = 0.7
Therefore, the sustainable growth rate can be calculated as follows
= ROE×b/(1-(ROE×b)
= 0.0768×0.7/(1-(0.0768×0.7)
= 0.05376/(1-0.05376)
= 0.05376/0.94624
= 0.05681
= 5.68%
Hence the sustainable rate of growth is 5.68%
