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MrRissso [65]
3 years ago
11

Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating an

ROE of 15% over the last 5 years but now believes that ROE will be 12% for the next 5 years. Given this, the firm's optimal dividend payout ratio is now ______.
Business
1 answer:
alexandr402 [8]3 years ago
8 0

Answer:

100%

Explanation:

Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management  has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE  will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now  100%

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Cash flows from investing activities do not include cash flows from:a. Lending.b. The sale of equipment.c. Borrowing.d. The purc
MrRissso [65]

Answer:

c. Borrowing

Explanation:

Borrowing in the Cash flow section is a financing activity for an organisation. Neither does it relates to Operating nor investing activities section. Cash flow from investing activities is the section on the cash flow statement that reports changes resulting from amounts spent activities such as investments in capital assets such as plant and equipment, investments.

4 0
3 years ago
For 2014, Bakers Manufacturing uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3.00 per u
jeyben [28]

Answer:

1. $6 per machine hour

2. $5 per unit

Explanation:

1.

Indirect cost are those cost which are not directly traceable to the product / department / project. Actual indirect cost rate is the actual incurred cost per unit of activity on which it actually based. Actual Indirect cost rate can be calculated as the Actual indirect cost divided by the Actual indirect expense. As shown below

Actual Indirect cost rate = $300,000 / 50,000 = $6 per machine hour

2.

Profit margin the the net of Selling price and all direct and indirect expenses.  Direct cost is $3 per unit, which the indirect cost is $6 per machine hour, each unit consumes two machine hours.

Selling price        $20

Less:

Direct cost    $3

Indirect cost <u>$12</u>

(2x$6)

Total cost             <u>($15)</u>

Profit Margin         $5

Profit margin earned each unit is $5

8 0
3 years ago
The Dealey Electric Group produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companie
WINSTONCH [101]

Answer: Oligopoly

Explanation:

The market type being described in the question is an oligopolistic market, where Dealey electric group and three other companies are in control of bulb production.

An oligopolistic market is a market where sales is being controlled by a very few number of companies and the prices of commodities in that market are also controlled by those companies.

4 0
3 years ago
Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
babymother [125]

Answer:  No,the company is not guilty.

Explanation:  In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.

Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.

Hence, Hines could not be charged of guilty of price discrimination.

6 0
3 years ago
Consider a bp gas station. as a result of an economic recession and decreases in consumer incomes, there will be a:
Alina [70]
<span>During an economic recession when the income of consumers has decreased, the BP station (an all gas stations) will see a leftward shift in the demand curve. This will result in gas stations having to lower their prices. If they don't lower their prices, they will have a glut of gasoline that they can't sell.</span>
4 0
3 years ago
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