<span>Sustainable Growth Rate is = ( 1- Dividend Payout Ratio ) X RoE
Now, We have to find out the RoE of the given problem.
Return on Equity (RoE) = (Net Profit Margin) X (Asset Turnover)
X(Equity Multiplier).
= (0.05) X (1.40) X (1.50)
=0.105 or 10.5%
Now Sustainable Growth Rate(SGR) = (1- .40) X 0.105
= .063 or 6.3%
So, According to the question SGR of Green Giant is = 6.3%</span>
Answer:
$958
Explanation:
The amount that is excess in the initial margin account can be withdrawn. So we calculate the price increase that will result in a $2000 increase in initial margin.
The present price per unit of the commodity is 950 cents for 25,000 units
A unit increase of the price (which is in cents) will be 1/100= 0.01
Therefore an increase in price of 0.01 will lead to gain of 0.01 * 25,000= $250
Let's get price increase that will result in $2,000 gain
$250 = 1 unit price increase
$2,000 = x
x= (2000 * 1) ÷ 250= 8 units increase
Therefore the price at which $2,000 can be withdrawn is 950 + 8= 958 cents
For this question you can use the CAPM formula:
E(rs) = risk free + (market return - risk free rate)*(beta)
=4.5% + (10.8% - 4.5%) * 1.3
= 4.5% + 8.19%
= 12.69%
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The Owner's Equity statement illustrates the capital account changes due to contributions, withdrawals, net income, or a net loss. So Ending Balance of the statement of changes in Owner's equity will be; Opening capital + Capital Added + Net Income - Owner's Withdrawals.
A one-page report titled a "statement of owner's equity" compares all assets and liabilities to determine the owner's equity's overall value. The snapshot, which is tracked over a predetermined time period or accounting period, depicts the flow of cash through a company.
Owner's equity is simply the difference between the owner's initial investment in the business and any withdrawals made by the owner. For instance: A real estate project with a value of $500,000 and a loan balance of $400,000 would have $100,000 in owner's equity.
Learn more about owner's equity here
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