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
bekas [8.4K]
2 years ago
15

he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $

11,700 Debt $ 15,700 Costs 12,800 Fixed assets 26,500 Equity 22,500 Taxable income $ 6,100 Total $ 38,200 Total $ 38,200 Taxes (21%) 1,281 Net income $ 4,819 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate
Business
1 answer:
Pavel [41]2 years ago
6 0

Answer:

9.69%

Explanation:

Given the following :

Net income = $4819

Total asset = $38,200

Taxable income = $6,100

Dividend payout ratio = 30% = 0.3

The internal growth rate is calculated thus ;

(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]

Return on asset = (Net income / total asset)

Return on asset = ($4,819 / $38,200)

Return on asset = 0.12615

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 0.3 = 0.7

Hence internal growth rate :

(0.12615 × 0.7) / 1 - (0.12615 × 0.7)

0.088305 / 1 - 0.088305

0.088305 / 0.911695

= 0.0968580

= 0.0968580 × 100%

= 9.685%

= 9.69% ( 2 decimal places)

You might be interested in
A local bank’s advertising reads: "Give us $50,000 today, and we’ll pay you $800 every year forever." If you plan to live foreve
Natalka [10]

Answer:

The correct response is Option b (1.60%).

Explanation:

According to the question,

Initial investment,

= $50,000

Perpetual annual cash flows,

= $800

Now,

The interest rate will be:

= \frac{Perpetual \ annul \ cash \ flows}{Initial \ investment}

On substituting the given values, we get

= \frac{800}{50,000}

= 0.016

i.e.,

= 1.60 \ percent

5 0
2 years ago
i have my first job interview in 4 days at a frozen yogurt shop. anyone with a job please tell me what to wear / how to answer c
drek231 [11]

Answer:

Be yourself

Explanation:

Don't panic about this! I'd go with casual formal, maybe some jeans and a nice shirt?
Make eye contact a lot and always answer honestly. Goodluck! I hope you get the job <3

6 0
1 year ago
Read 2 more answers
What is the cost when someone borrows money from someone else?.
PSYCHO15rus [73]

The cost when someone borrows money from someone else is known as interest.

<h3>What is interest?</h3>

Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.

For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.

To learn more about interest rate, please check: brainly.com/question/14935026

8 0
2 years ago
Sanctions are a type of trade restriction that is ineffective in forcing change in other countries.
Nikolay [14]

<span>The answer to this question is False. Sanctions do not only rarely achieve their goal of forcing change in the targeted country, but they also tend to produce collateral economic damage in the nations that do apply them.</span>

3 0
3 years ago
If you have a low credit score, lenders are more likely to give you what type of interest rate? A. A low interest rate B. A high
alisha [4.7K]

Answer:

B) A high interest rate.

Explanation:

A low credit score means a bad credit score. Meaning you are not that reliable in paying your credit back. If you were reliable, they would make it easy for you and give you a low interest rate. However, your credit score says otherwise so they will give you a high interest rate since you are a higher risk.

8 0
3 years ago
Other questions:
  • A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses
    6·1 answer
  • Bonita Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $88,500
    7·1 answer
  • The Custom Halloween Company purchases a new sewing machine to replace an older machine with limited capabilities. The first wee
    11·2 answers
  • Alexis is choosing between a job in the National Parks Service, which offers a pension plan, and a forestry contracting job with
    8·1 answer
  • Productivity is the
    15·1 answer
  • A firm has $300 million of assets that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 mill
    6·1 answer
  • At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the boo
    11·1 answer
  • A factory wishes to maximize its profit by choosing how many of each of its products to produce every week. The factory cannot p
    7·1 answer
  • Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses durin
    6·1 answer
  • Angelo's father says he's going to "live off his Social Security" once he's ready to retire. What is Social Security, and how do
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!