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High Flyer, Inc., wishes to maintain a growth rate of 16.75 percent per year and a debt–equity ratio of 1.05. The profit margin

mylen [45]

Answer:

The dividend payout ratio is -48.12%

The Sustainable growth rate is 16.74%

Explanation:

In order to calculate the dividend payout ratio we would have to calculate the following formula:

growth rate=(ROE x dividend payout ratio ) / [ (1 - (ROE x dividend payout ratio))

To calcuate the ROE we would have to use the following formula:

ROE=Profit margin x Total asset turnover x Equity multiplier

ROE=0.045 x 1.05 x (1 + 1.05)

ROE=0.0968625

Therefore, dividend payout ratio would be calculated as follows:

0.1675 = (0.0968625 x dividend payout ratio) / [ 1 - (0.0968625 x dividend payout ratio))

0.1675 = 0.0968625 dividend payout ratio / (1 - 0.0968625 dividend payout ratio)

0.1675 - 0.016224469 dividend payout ratio = 0.0968625 dividend payout ratio

0.1675 = 0.113086969 dividend payout ratio

dividend payout ratio=1.481160928

Therefore, dividend payout ratio=1-1.481160928

dividend payout ratio=-48.12%

To calculate the Sustainable growth rate we would have to calcilate the following formula:

Sustainable growth rate=ROE*b/1-ROE*b

Sustainable growth rate=0.0968625*1.481160928/1-0.0968625*1.481160928

Sustainable growth rate=0.14346895/1-0.14346895

Sustainable growth rate=0.14346895/0.85653105

Sustainable growth rate=16.74%

8 0

3 years ago

Which of the following management orientations holds that each country in a global marketplace is unique?

iogann1982 [59]

Answer:

Polycentric orientation.

Explanation:

The polycentric orientation, referring to the management of the global marketplace, is a market vision (and in a great sense also political) that establishes that there is no single central point in a globalized market, but that each country has a strategic importance in the different sectors market that most concern you. Thus, the idea of market leaders is rejected, but rather the idea of a fragmented market in different sectors, with varied leaders, is defended.

7 0

3 years ago

If a company spends $20 million to install new footwear-making equipment with capacity to produce 1 million pairs of athletic fo

labwork [276]

Answer: 10% or $2,000,000

Explanation:

Seeing as no figures were produced, we will have to do this ourselves.

We will make assumptions which include the following,

Life of the equipment = 10 Years

Salvage value = 0

Those are our 2 assumptions.

In that case then,

The Annual Depreciation will be,

Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life

= (20 - 0) / 10

= $2 million

Seeing as 2 million is,

= 2/20 * 100

= 10%

That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.

If you need any clarification do react or comment.

3 0

3 years ago

what is a basic premise of the acquisition method regarding accounting for a noncontrolling interest?

miv72 [106K]

Answer: D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.

What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.

D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.

7 0

3 years ago

Jenny has a high internal locus of control. She needs a job to help pay for her expenses. Based on what you know about her, whic

antoniya [11.8K]

Answer:A) Event organizer for a local politician.

Explanation:Locus of control is stern used to describe the degree or level to which people believe that events that happens to them are as a result of their actions as opposed to other external factors or influences.

A high internal locus of control is when a person has a strong belief that he or she is the main determinant of how events or things play out in their lives.

WITH A HIGH INTERNAL LOCUS OF CONTROL JENNY WILL PERFORM BETTER WHEN ASKED TO WORK AS AN EVENT PLANNER FOR A LOCAL POLITICIAN.

6 0

3 years ago