Answer:
The sustainable Growth Rate is 15.46%
Explanation:
Return on equity= (Net income/Equity Shareholder's Fund) * 100
= ($19,789 / $83,200) * 100
= 23.78%
Payout ratio is 35%.
Therefore, Retention Rate is 65% or 0.65
Sustainable Growth Rate = Return on Equity * Retention Rate
= 23.78% * 0.65 =
= 0.2378 * 0.65
= 0.15457
= 15.46%
Thus, the sustainable Growth Rate is 15.46%
Excess Demand is occurring.
This means that the amount of supply in a market cannot keep up with demand.
<span>Net domestic product (NDP) equals the output of the economy (GDP) minus the depreciation of the nation's capital goods. This is an indicator of how much a nation must "invest" to continue that current GDP.
To solve for the NDP your equation would be:
NDP = GDP - depreciation
When you are finding the NDP of something, you are commonly referring to a house, vehicle or the life span of a machine. </span>
