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
Andrej [43]
3 years ago
5

Johnson Products earned $5.08 per share last year and paid a dividend of $2.00 per share. If ROE was 13 percent, what is the sus

tainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
olganol [36]3 years ago
8 0

Answer:

7.88%

Explanation:

Given that,

Dividend earned last year = $5.08 per share

Dividend paid = $2.00 per share

Return on equity, ROE = 13 percent

Retention ratio:

= (Dividend earned last year - Dividend paid) ÷ Dividend earned last year

= ($5.08 - $2.00) ÷ $5.08

= $3.08 ÷ $5.08

= 0.6062

Sustainable growth rate:

= Retention ratio × Return on equity

= 0.6062 × 0.13

= 0.078806 or 7.88%

You might be interested in
At the profit-maximizing level of output
tensa zangetsu [6.8K]

Answer:

The correct answer is letter "C": marginal revenue equals marginal cost.

Explanation:

The profit-maximizing level of output for every type of firm is reached when the marginal revenue of production equals the marginal cost meaning that the additional cost of selling one more unit equals the cost of producing one more unit.

Marginal costs vary according to changes in production. Because of that, managers must identify when those events happen to calculate the profit margin (percentage sales that are converted into profits) of the firm to avoid losses.

5 0
3 years ago
Even though the procedure called for you to do so, organic chemists typically do not weigh sodium sulfate when it is used for th
bogdanovich [222]

Answer:

a) Why is it NOT necessary to weigh accurately the sodium sulfate?

Explanation:

The mass of sodium sulfate is not important to the lab because it is not used in any of the calculations to find the partition coefficient of 9-Fluorenone.

8 0
3 years ago
Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was
solmaris [256]

Answer:

$225,000

Explanation:

The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow.  So the amount reported under the investing activity is $225,000 as cash inflow.

8 0
3 years ago
Cullen files a suit against demi. cullen and demi meet, and each party's attorney argues the party's case before a judge and jur
LiRa [457]
It is a settlement agreement, where the defendant could pay the plaintiff an agreed amount to settle the dispute.
5 0
3 years ago
Read 2 more answers
What are the four main types of access proposed by Andersen (1997)?
kompoz [17]

<u>Explanation:</u>

They are:

  1. potential access
  2. realized access
  3. equitable or inequitable access
  4. efficient and effective access

According to Andersen, Potential access refers to the availability of resources that would allow an individual to seek care if needed. The Realized access is viewed as the actual use of the care, that is, the individual realizes (or makes use of ) the potential access. Further, Andersen describes Equitable access as a type of access driven by demographic characteristics and need. While Inequitable access results not from demographic characteristics and need but from the individual's social structure, health beliefs, and enabling resources.

A

4 0
3 years ago
Other questions:
  • Max purchased an antique watch from a local store for $500. As soon as Max stepped outside the shop with the watch, a man approa
    6·1 answer
  • On a given trading day, 700 stocks advanced and 1,200 stocks declined. The volume of declining stocks was 280 million while the
    12·1 answer
  • 5. If a business letter is part of a series of correspondence, a/an _______ line is often included. A. attention B. urgent C. co
    10·1 answer
  • dditional Information Accrued sales salaries amount to $2,400. Prepaid selling expenses of $2,100 have expired. A physical count
    14·1 answer
  • Choose all that apply. Select all of the tools you could use to track your expenses.
    12·1 answer
  • A registered representative says in a conversation with a prospect that a certain mutual fund "has no initial sales load." The f
    7·1 answer
  • Under an operating lease: (Select all that apply.)Check All That ApplyThe lessee reports amortization expense and interest expen
    12·1 answer
  • Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix
    6·1 answer
  • What are the name of the 7 contents
    11·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!