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Delvig [45]
3 years ago
15

Asymmetric Frames Corp. had a return on equity of​ 15%. The​ corporation's earnings per share was​ $6.00, its dividend payout ra

tio was​ 40% and its profitminusretention rate was​ 60%. If these relationships​ continue, what will be United Financial​ Corp.'s internal growth​ rate?A.​8.6%B.​6.0%C.​15.6%D.​9.0%
Business
1 answer:
svet-max [94.6K]3 years ago
7 0

Answer:

D. 9.0%

Explanation:

Provided return on equity = 15% = K_e

Earnings per share = $6.00

Dividend = 40% = $6 \times 0.4 = $2.40

Internal Growth Rate = Cost of equity \times (1 - Dividend payout ratio)

Putting values in above we have

Internal growth rate = 15% \times (1 - 40%)

= 15% \times 60%

= 9%

Therefore, correct option is

D. 9.0%

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What must the Nederlander Organization do effectively to take its musicals to foreign markets?
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The Nederlander Organization must effectively use teaser and revealers promotion campaigns to take its musicals to foreign markets.

Option a

<u>Explanation:</u>

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3 years ago
A customer has signed a Letter of Intent (LOI) to buy $25,000 of XYZ mutual fund to qualify for a breakpoint that reduces the sa
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3 years ago
Mr. Ghani wants to deposit his savings of Rs. 50,000 in a bank which offers 8% interest compounded semi-annually to withdraw Rs.
Harman [31]

Answer:

How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted is explained below in detail explanation.

Explanation:

Let the no of withdrawals be n, then

Present value of n withdrawals = 50000

Interest rate per 6 months =8%/2 =4%

Withdraw amt/(Int rate)*(1-1/(1+interest)^n) = 50000

=> 2500/0.04*(1-1/1.04^n) = 50000

1/1.04^n = 0.2

1.04^n = 5

=> n = ln(5) / ln(1.04) = 41.03

Total 41 withdrawals of Rs.2500 can be made (with a smaller 42nd installment of less than Rs.2500)

8 0
3 years ago
Ford had no presence in India before 2005, but it used the __________________ approach to open its own first manufacturing unit
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Answer:

Letter A is correct. <u><em>Direct investment.</em></u>

Explanation:

Direct Investment or Foreign Direct Investment is defined as international investment for the purposes of creation and operations in another country. This type of investment may establish a majority or minority interest in companies that give the investor control over the operations and activities of that company.

In the case of the matter, it involves the Ford company whose direct investment was made in India to open its own business operations in India.

It is a type of complex investment, often used by companies wishing to establish a commercial presence in foreign countries, so it involves not only capital and interest, but management systems and technology.

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3 years ago
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