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german
3 years ago
5

Levine, Inc., has an ROA of 8.6 percent and a payout ratio of 33 percent.

Business
1 answer:
Phoenix [80]3 years ago
3 0

Answer:

Explanation:

<u>Workings</u>

Internal growth rate is the highest possible growth attained by a business without obtaining outside funding but with its retained earning.

<u>Given information</u>

ROA = 8.6%

Percentage Payout ratio = 33%

Internal growth rate = (ROA * Retention ratio) / 1 - (ROA * Retention ratio)

Retention ratio is the percentage earning that is no paid out in dividends

To calculate the retention ratio , we use the formula

Retention ratio = (1-percentage pay out ratio)

= 1 - 0.33 = 0.67

Substituting retention ratio for 0.67 in the inter growth rate formula

Therefore

Internal growth rate = (0.086*0.67)/1-(0.086*0.67)

0.05762/(1-0.05762) = 0.05762/0.94238

=0.0611

= 6.11%

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Answer: B) The option premium is greater or equal to its intrinsic value because of the time premium.

Explanation:

The option premium can be calculated by adding the time premium and the intrinsic value. The time premium is the part of the option premium that accounts for the time remaining till the premium matures while the intrinsic value is the difference between the value of underlying asset and the strike price.

As the time premium can be zero but never negative, the option premium can either be greater than its intrinsic value or equal to it. It cannot be lower than it because of the time premium.

6 0
3 years ago
Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividen
tigry1 [53]

Answer:

$2,248,660

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According to the scenario, computation of the given data are as follows,

Particulars                                                   Amount

Retained Earning                                      $682,100

Correction of repairs expense (Add)       $89,160

Net income (Add)                                      $1,558,700

Dividend Paid (Less)                                 $81,300

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7 0
3 years ago
Select all advantages of investing in a retirement account.
Aleksandr [31]

Money is deducted from your paycheck before taxes are taken out.

Answer: Option A

<u>Explanation:</u>

The major advantage of the tax investing is making a contribution to a retirement account before pre-tax. The money as to be deducted from before taxes are taken out.

The more popular as workers started to take control of their own retirement savings, the investing retirement account offers individuals an opportunity to save for retirement in a tax advantages account. For example, the government allows taxable income to be reduced by the amount of the contribution to a retirement plan.

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4 years ago
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2 years ago
A woman arrives at the clinic for a pregnancy test. The first day of her last menstrual period (LMP) was February 14, 2013. Her
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Answer:

a) November 21, 2013

Explanation:

The expected date of birth (EDB) would be calculated using Naegele's Rule and it is based on a normal 28 days menstrual cycle. The steps are as follows:

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3 years ago
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