Answer:
The sustainable growth rate is 16.52%
Explanation:
To compute the substantial growth rate, first, we have to calculate the retention ratio. The formula to compute the retention ratio is shown below:
= 1 – payout ratio
= 1 – 0.16
=0.84 or 84%
Now, we use the formula of substantial growth rate which is shown below:
= (Return on equity × retention ratio) ÷ { 1 - (Return on equity × retention ratio)}
where,
Return on equity = (Net income ÷ total equity) × 100
= ($3,640 ÷ $21,560) × 100
= 16.88%
= (16.88% × 84%) ÷ ( 1 - 16.88% × 84%)
= 0.141792 ÷ (1 - 0.141792 )
= 0.141792 ÷ 0.858208
= 0.1652 or 16.52%
I believe that statement is False,
you can drive a car(4 wheel) by having Florida's learner driver license. But you need an additional special license if you want to ride a motorcycle(2 wheels). The special license for motorcycle is divided depending on its cc's. Moped license, with 50cc or smaller and automatic transmission tend to be easier to obtain.
I think it depends on how people think of you and how much money you get paid, but I would say being with others. Just because it said you were working as a team. I would not consider "a want" in this situation.
Answer:
9.42%
Explanation:
According to the CAPM,
market required rate of return = risk free rate + (beta x market risk premium)
for stock A :
3.7% + (0.65 X 8.8%) = 9.42%
The market required rate of return isn't equal to the expected return based on the calculation.
for stock B :
3.7% + (1.22 X 8.8%) = 14.44%
for stock B, they both match
