Identify the advantages and disadvantages of a command economy.

A firm's sustainable growth rate represents the:

Alecsey [184]

Answer:

1. A firm's sustainable growth rate represents the:

highest growth rate without increasing financial leverage.

2. The sustainable growth rate of a firm with net income of $2.90 million, cash dividends of $1.90 million, and return on equity of 16% is:

= c. 5.52%

Explanation:

a) Data and Calculations:

Sustainable growth rate = Return on equity * Retention rate

Net income = $2.90 million

Cash dividends 1.90 million

Retained earnings = $1.0 million

Retention rate = $1.0/$2.90 * 100 = 34.48%

Return on equity = 16%

Therefore, the sustainable growth rate = 16% * 34.48%

= 5.5168%

= 5.52%

b) Sustainable growth rate is the rate of revenue growth, which an entity can attain without increasing its financial leverage (debts). The sustainable growth rate answers the question of how much a company can grow without additional equity or debt financing. It is a ratio that investment analysts and investors widely seek. There are four main ways of increasing an entity's sustainable growth rate, including sale of debt, issue of equity, increased profitability through efficient sales revenue, and reduced dividends payout to increase retained earnings.

7 0

3 years ago

Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins

Degger [83]

Answer:

12.55 days

Explanation:

<em><u>Provided information </u></em>

Number of employees 2

Average production time=1.8 days

Standard deviation=2.7 days

Inter-arrival time= 1 day

Coefficient of variation= 1 day

Standard deviation of inter-arrival time= 1 day

The coefficient of variations

<u>Inter-arrival coefficient of variation </u>

$C_{vi}=\frac {\sigma}{T}$ where $\sigma$ is standard deviation of inter-arrival time, T is inter-arrival time and $C_v$ is coefficient of variation of inter-arrival time

$C_{vi}=\frac {1 day}{1 day}=1$

<u>Production time coefficient of variation </u>

$C_{vp}=\frac {2.7}{1.8}=1.5$

<u><em>Total utilization time </em></u>

$U=\frac {T}{n*T_i}$ where T is the time of production, n is number of employees, U is utilization, $T_i$ is inter-arrival time

$U=\frac {1.8}{2*1}=0.9$

Therefore, utilization time by 2 employees is 0.9

<u>Expected average waiting time </u>

$T_e=(\frac {T}{n*T_i})*0.5(C_{vi}^{2}+C_{vp}^{2})*(\frac{U^{\sqrt{2(n+1)}-1}}{1-U})$

Where $T_e$ is expected average waiting time and the other symbols as already defined

Substituting 1.5 for $C_{vp}$ , 1 for $C_{vi}$ , 0.9 for U, 2 for n, 1 for $T_i$ and 1.8 for T

$T_e=(\frac {1.8}{2*1})*0.5(1^{2}+1.5^{2})*(\frac{0.9^{\sqrt{2(2+1)}-1}}{1-0.9})$

$T_e=0.9*1.625*8.583709=12.55367 days$ and rounding off to 2 decimal places we obtain 12.55 days

Therefore, expected duration between order received and beginning of production is approximately 12.55 days

7 0

3 years ago

Which statement would be MOST important to include in a summary of the section "Karl Marx"? Marx theorized that capitalists woul

TEA [102]

The most important claim about Karl Marx would be the theorizing that capitalists would try to get more work from people for less pay.

He was a German philosopher who developed the foundations of communism, a system that criticized capitalism and its doctrines. His most prominent theories are about the transition to communism, the class struggle, the Marxist theory of ideology and surplus value.

Therefore, the correct option for the question refers to surplus value, which was defined for Karl Marx as the difference between the value of the work produced by employees and their salary paid. For him, the surplus value is the work produced and not paid, being a condition of exploration of the capitalist system.

Find out more about Karl Marx here:

brainly.com/question/1092276

#SPJ1

5 0

1 year ago

IN planning a database and it's related tables it is important to consider

IRISSAK [1]

In planning the database it is important to consider- what each table is 'about'.

Explanation: It becomes very important so that any sort of duplicate data can be avoided. These databases are the source which provides the information. It should be segregated into several subject based tables. Basically, databases provides the access to the accurate information and to provide accuracy one must be careful while creating. Every table is anyhow related to another.

5 0

3 years ago

For each of the following transactions, determine if Raymond Corporation has earned revenue during the month of May and, if so,

kompoz [17]

Answer:In the month of May, Revenue was only earned from Customer C $3,400 and customer D, $2,300. Revenue was not earned from Customers A and B in the month of May. Therefore, total revenue is $5,700.

Explanation:In accordance with the principle of revenue recognition,Revenue will only be recognised when it is earned and services when they are fully rendered. For Customer A, the service has not been rendered, Therefore, the revenue is not yet earned.

For customer B, Although agreement has been reached and goods delivered, since payment hasn't been received, revenue is not recognised.

6 0

3 years ago