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%
Answer:
<u>Cost of common equity is 0.1333 or 13.3%</u>
Explanation:
P= D1/(r-g)
D1=3.00
g= 0.05
P=36
Here we have
,
3.00/(r-0.05) = 36
r-0.05= 3/36= 0.08333
r= 0.1333= 13.33%
Answer:
The answer is 2 the thick tree branches had shiny red apples hanging from them
with an expected rate of return of 10% and a default risk of 20% over the portfolio life with an expected rate of return of 10% and a default risk of 20% over the portfolio life
<h3>What is
rate of return?</h3>
A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.
The annual rate of return is the percentage change in an investment's value. For instance, if you assume a 10% annual rate of return, you are anticipating that the value of your investment will rise by 10% each year.
Assume an investor paid $950 for a short-term bond, such as a US Treasury Bill, and redeemed it at maturity for its face value of $1000.
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Answer:D. It will be easier for Lloyd to make online bill payments with a credit card.
Explanation: