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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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Your store has average sales of $1,680 per day. Its shrinkage rate is 3%. What will its losses be for an entire year?
Lerok [7]

Answer:

$18,396

Explanation:

Average sales of the store per day = $1,680

Number of days in a year = 365

Total sales in a year = $1,680  x 365 = $6132,200

Shrinkage rate = 3%

Losses for an entire year = 0.03 x $6132,200 = $18,396

6 0
3 years ago
Keystone predators can maintain species diversity in a community if they
Vikki [24]

Answer:

The options are given below:

A) competitively exclude other predators.

B) prey on the community's dominant species.

C) allow immigration of other predators.

D) reduce the number of disruptions in the community.

E) prey only on the least abundant species in the community.

the correct option is B

Explanation:

Keystone species refers to a predator which prevents a particular herbivorous species from wiping out the dominant plant species. If the number of prey are low, the keystone predators can be less abundant and still be effective. Keystone species have a disproportionately large effect on its environment relative to its abundance.

Therefore, by preying on a community's dominant species, keystone predators help to maintain the species diversity in the community, because they ensure that the dominant predators do not totally wipe out the various organisms present in the ecosystem.

4 0
3 years ago
Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below:
Sunny_sXe [5.5K]

Answer:

PV Index = 1.158

Explanation:

Present value index is the ratio of discounted cash flows of the project divided by initial outlay required for the project thus first we calculate the Present Values for Investment B

Present value factors @ 12% for year 0, 1, 2, 3, 4 respectively.

1

0.893

0.797

0.712

0.636

Net Present Value = -9000 + (5000 * 0.893) + (4000 * 0.797) + (3000 * 0.712) + (1000 * 0.636)

NPV = $1425

Present value Index = NPV / Initial investment = 1425/9000 = 0.158

This can be interpreted as 1 + 0.158 = 1.158,

1 being the initial investment. You can also choose not to subtract the initial outlay when calculating NPV.

Hope that helps.

8 0
3 years ago
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Being present in 170 countries, McDonald's business is indeed very widespread and there are lots of factors in it being very successful now. Even if there are certain problems in the economy of a certain country, many countries will still have very booming economy allowing the business to grow more and more profitable. 
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3 years ago
Solaris Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a sol
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