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Dmitriy789 [7]
2 years ago
11

Assume the following ratios are constant: Total asset turnover 3.00 Profit margin 5.9 % Equity multiplier 1.50 Payout ratio 35 %

What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %.
Business
1 answer:
Lesechka [4]2 years ago
7 0

Answer:

Sustainable growth rate = 20.86%

Explanation:

Given the total asset turnover = 3

Profit margin = 5.9%

Equity multiplier = 1.50

Payout ratio = 35%

Sustainable growth rate =  ROE * (1 – payout ratio) / 1- ROE * (1 – Payout ratio)

ROE = Profit margin * total asset turnover * equity multiplier  

ROE = 5.9 * 3 * 1.5

ROE = 26.55%

Sustainable growth rate = 0.2655 * (1-0.35) / 1 – 0.2655 * (1-0.35)

Sustainable growth rate = 20.86%

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Answer:

B) Federal Sentencing Guidelines for Organizations Act.

Explanation:

The Federal Sentencing Guidelines for Organizations Act (FSGO) was passed on November, 1991, and it provides a guideline for organizations' compliance and ethics programs. It applies to virtually all types of private organizations, including corporations, partnerships, non-profits, labor unions, etc.

7 0
2 years ago
Suppose that you buy a two-year 7.4% bond at its face value. a-1. What will be your total nominal return over the two years if i
Harman [31]

Answer: 15.35%

Explanation:

The total nominal return over the two years if inflation is 2.4% in the first year and 4.4% in the second year will be calculated thus:

= (1+Interest rate)² -1

= (1 + 7.4%) - 1

= (1 + 0.074)² - 1

= 1.074² - 1

= 1.153476 - 1

= 0.153476

= 15.35% over the two years

8 0
3 years ago
Giada Foods reported $1,010 million in income before income taxes for 2021, its first year of operations. Tax depreciation excee
Fiesta28 [93]

Answer:

$32.4 million

Explanation:

The computation of the balance in the deferred tax liability in the December 31, 2021, balance sheet is shown below:

Deferred tax liability  is

= Tax depreciation exceeded depreciation for financial reporting purposes × enacted tax rate

= $108 million × 30%

= $32.4 million

Simply we multiplied the exceeded amount with the enacted rate so that the deferred tax liability could come

6 0
3 years ago
A manufacturing company has a beginning finished goods inventory of $15,400, raw material purchases of $18,800, cost of goods ma
cupoosta [38]

Answer:

$30,900

Explanation:

The beginning finished goods is $15,400

Raw materials purchased is $18,800

The cost of goods manufactured is $34,100

Ending finished goods is $18,600

Therefore the cost of gods can be calculated as follows

= 15,400+34,100-18,600

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Hence the cost of goods sold by the company is $30,900

8 0
2 years ago
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Inessa [10]
<h2>The given statement is false. </h2>

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If the driver has set the phone to "do not disturb" then definitely the notification that he gets through various apps will be kept silent, calls will reach voice mail and we will be notified with missed calls and our screen will be blank when the call is received. But this do not disturb mode does not control the air-conditioning of the car or blocking the driver from changing the radio station.

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2 years ago
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