All categories

3 years ago

The ________ is the fraction of earnings reinvested in the firm.

Business

1 answer:

jeyben [28]3 years ago

3 0

Answer:

C, retention rate and plow back ratio

Explanation:

Retention rate can simply be said to be the ratio between retained earning and earnings at risk; i.e the rate of earnings that one is assured of as against the one you're not assured of. The same can be said about plow-back ratio. The plow-back ratio can be defined as the ratio of how much earnings are retained after dividends have been paid out.

This retained earnings are then reinvested into the firm to yield another dividends and the cycle continues.

Cheers.

You might be interested in

Abey Kuruvilla, of Parkside Plumbing, uses 1,220 of a certain spare part that costs $26 for each order, with an annual holdi

lina2011 [118]

Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo/Q + QH/2

Where D = Annual demand, Co = Ordering cost per order and H = holding cost per item per annum.

For 25 Order Size

Total cost = 1,220 x $26/25 + 25 x $25/2

Total cost = $1,268.80 + $312.50 = $1,581.30

For 40 Order Size

Total cost = 1,220 x $26/40 + 40 x $25/2

Total cost = $793 + $500 = $1,293.00

For 50 Order Size

Total cost = 1,220 x $26/50 + 50 x $25/2

Total cost = $634.40 + $625 = $1,259.40

For 60 Order Size

Total cost = 1,220 x $26/60 + 60 x $25/2

Total cost = $528.67 + $750 = $1,278.67

For 100 Order Size

Total cost = 1,220 x $26/100 + 100 x $25/2

Total cost = $317.20 + $1,250 = $1,567.20

b. The economic order quantity is 50 units because it reduces the total cost to $1,259.40

Explanation:

In this case, we need to determine the total costs based on different order sizes. Thus, economic order quantity is the order size that minimises the total cost.

4 0

3 years ago

Punkeytown carries no insurance for possible claims and, as of January 1, 2019 (the start of its fiscal year), Punkeytown had no

Simora [160]

Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000

Explanation:

The liability refers to the obligations of the firm which are certain is going to make payment as compensation.

The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.

The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.

4 0

3 years ago

Shanna Engel started up a new nonprofit organization in 2013 named Concern for Animal Shelter and Habitats (CASH). The organizat

lesya [120]

Answer:

Net Assets = Total Liabilities - Total Assets

Transaction # 1

Cash comes under Permanantly Restricted Net Assets

Hence -

Net Assets = $50,000 - $50,000 = $0

Transaction # 2

As there was no transaction took place hence nothing to be reported.

Transaction # 3

Inventory comes under supply & its temporarily restricted net assets

Hence

Net Assets = $1750 - $1750 = $0

Transaction # 4

Advertising comes under Permanently Restricted Net Assets

Hence

Net Assets = $0 - (-$5000) = $0 + $5000 = $5000

Transaction # 5

Office Equipments comes under Temporarily Restricted Net Assets

Hence

Net Assets = Total Liabilites - Total Assets

= $ 5000 - [ - $5000 + $10000 ]

= $ 5000 - $5000 = $0

Hence ending balance is

Unrestricted Net Asstes = $0

Temporarily Restricted Net Asstes = $0

Permanently Restrcited Net Asstes = $5000

Explanation:

See attached file for table

8 0

3 years ago

When I called about the cost of theses items it was implied total would only be 35.00

elixir [45]

Answer:

plus tax

Explanation:

7 0

3 years ago

You are given the following information for Cleen Power Co. Assume the company’s tax rate is 40 percent. Debt: 5,000 6.6 percent

Misha Larkins [42]

Answer:

WACC = 8.84%

Explanation:

Face value= $ 1000 (assume)

Current price = 1000* 109% = 1090

semianual interest =1000 *.066*6/12 = 33

semiannual months = 20 *2 = 40

Yield to maturity of bonds = [semiannual interest +(face value -current price) /months]/[(face value+price)/2]

= [33 + (1000- 1090 )/40 ]/[(1000 +1090)/2]

= [33 + (-90/40) ] / [2090 /2]

= [33 - 2.25 ] /1045

= 30.75 /1045

= .0294 or 2.94% semiannually or (2.94*2) =5.88 % annually

After tax cost of debt = 5.88 (1- .40 ) = 3.528 %

Market value of bond = 1090 *5000 = $ 5450000

b)cost of equity =Rf +[beta*market premium ]

= 4.6 + [1.12 * 5]

= 4.6 + 5.6

= 10.20 %

market value of equity = 380000*56 =$ 21280000

Total market value of debt and equity =5450000 +21280000

= $ 26730000

weight of debt = 5450000/26730000 = .2039

weight of equity = 21280000 /26730000 = .7961

WACC = (after tax cost of debt *WD)+(cost of equity *We)

= (3.528 * .2039 )+(10.20 * .7961)

= .7194 + 8.1202

= 8.84%

7 0

3 years ago