1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rjkz [21]
2 years ago
11

A firm has adopted a policy whereby it will not seek any additional external financing. Given this, what is the maximum growth r

ate of the firm if it has net income of $12,000, total equity of $40,000, total assets of $80,000, and a 40 percent dividend payout ratio?
Business
1 answer:
dlinn [17]2 years ago
7 0

Answer:

9%

Explanation:

Given:

The net income = $12,000

Total equity = $40,000

Total assets = $80,000

Dividend payout ratio = 40%

Now,

Internal rate of return, r = \frac{\textup{Net Income}}{\textup{Total Equity}}\times100\%

or

Internal rate of return, r = \frac{\textup{12,000}}{\textup{80,000}}\times100\%

or  

Internal rate of return, r = 15%

and,

Retention ratio = 1 - Dividend payout ratio

= 1 - 0.40

= 0.60 or 60%

Now,

Growth rate = Retention ratio × Internal rate of return

or

Growth rate = 0.60 × 0.15

or

Growth rate = 0.09

or

Growth rate = 9%

You might be interested in
Recognizing an employee as the Star Performer of the Month would be satisfying the _____ need of the Maslow s hierarchy of needs
Vikki [24]

Answer:

The correct answer to the following question is Esteem need of Maslows hierarchy of needs.

Explanation:

Maslows hierarchy of need is a motivation theory given by Abraham maslow, according to him people are motivated in order to achieve certain. He has described his theory of needs as pyramid which consists of physiological needs, safety needs,  social needs, esteem needs and self actualization.

In esteem needs , maslow tells about people's need for appreciation and respect, after a person has achieved the first three basis needs , the persons behavior would be motivated by esteem needs. Because people have need for feeling prestige and sense of accomplishment, self worth and self esteem.

6 0
3 years ago
In the simple Keynesian model, Multiple Choice Inflation becomes a problem only if demand increases at full employment. Inflatio
ElenaW [278]

Answer:

In the simple Keynesian model, inflation becomes a problem only if demand increases at full employment.

Explanation:

In the Keynesian view, price inflation is mainly the result of relative changes in supply and demand, which lead to price changes. Changes in the money supply have no direct influence here. According to this school, the money supply is the result of money creation by the banking system; but this plays only a limited role in the process.

In this vision, a distinction is made between:

- Demand inflation: Inflation occurs when the aggregated demand for goods and services increases, with an initially constant supply.

-Cost inflation: Inflation occurs if there is a sudden decrease in supply when demand remains the same.

7 0
3 years ago
Consider the following: Alex is one of the leading widget producers in the country. His total costs amount to $10,000, total fix
Lilit [14]

Answer:

The correct answer is 20 units.

Explanation:

According to the scenario, the given data are as follows:

Total cost = $10,000

Total fixed cost = $2,000

Average variable cost = $400

So, Total variable cost = Total cost - Total fixed cost

= $10,000 - $2,000 = $8,000

So, we can calculate the total number of widgets producing by using following formula:

Units producing = Total variable cost  ÷ average variable cost

= $8,000 ÷ $400

= 20 units

6 0
3 years ago
Inferring Transactions from Financial Statements
denpristay [2]

Gap's cost of goods sold is $10,258 million and Cash paid to supplier is $10,447 million.

Let understand that Cost of good sold refers to amount of expenses incurred to produce the goods produced by a firm.

  • The formulae for deriving the Cost of Goods Sold is {Beginning Inventories + Purchases – Ending Inventories}.

  • Information given are <em>Purchased inventories $10,392, Ending inventories $2,131 and Beginning inventories $1,997</em>

<em />

Cost of goods sold = $1,997 + $10,392 - $2,131

Cost of goods sold = $10,258

  • In conclusion, the amount of Gap's cost of goods sold is $10,258

Let understand that Cash paid to accounts payable refers to net amount paid to supplier of goods.

  • The formulae for deriving the Cash paid to accounts payable is  Beginning balance for 2015 + Purchases - Ending balance for 2015

Cash paid to accounts payable = $1,181 + $10,392 - $1,126

Cash paid to accounts payable = $10,447

  • In conclusion, the amount of Gap's Cash paid to supplier is $10,447

Learn from similar solution here

<em>brainly.com/question/16805564</em>

6 0
2 years ago
Achieving a differentiation-based competitive advantage does NOT involve:a. incorporating product attributes and user features t
BARSIC [14]

Answer:

None of the above

Explanation:

As the differentiation strategy focuses on the gaining maximum customers even in highly competitive market, this is done by maximum customer service and includes all of the above.

Thus all the statements in the question are valid and are part of discrimination policy.

Whether it be the additional cost benefit to customers, the extra benefits of using the product, or the increase in satisfaction in customers with any-kind like, non economic or intangible.

5 0
3 years ago
Other questions:
  • On January 1, 2021, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,80
    7·1 answer
  • School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others
    6·2 answers
  • if consumers to demand in a quantity of 100 at $4 per item and the suppliers Supply 200 of the item at $4 than a surplus is crea
    10·1 answer
  • Discuss Cultural heterogeneity of South africa
    7·2 answers
  • Select the correct answer. According to Maslow’s hierarchy of needs, which need consists of an individual striving for importanc
    5·1 answer
  • Free market economies distribute goods and services than command economies.
    11·1 answer
  • While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being
    7·1 answer
  • Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux support contr
    6·1 answer
  • is creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve
    9·1 answer
  • moriband corp. paid a dividend of $2.15 yesterday. the company’s dividend is expected to grow at a steady rate of 5 percent for
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!