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Roman55 [17]
2 years ago
5

he newspaper reported last week that Bennington Enterprises earned $34.03 million this year. The report also stated that the fir

m’s return on equity is 12 percent. The firm retains 80 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Business
1 answer:
aivan3 [116]2 years ago
4 0

Answer:

(A) 9.6%

(B) 37,296,880

Explanation:

Current earnings for Bennington Enterprise is $34.03 million

The ROE is 12 percent

= 12/100

= 0.12

Retention ratio is 80 percent

= 80/100

= 0.8

(A) The firms earning growth rate can be calculated as follows

= 0.8× 0.12

= 0.096×100

= 9.6%

(B) Next year earnings can be calculated as follows

= 34,030,000 × (1+0.096)

= 34,030,000× 1.096

= 37,296,880

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Explanation:

None of the options seem to be correct.

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The first option is wrong as stakeholders are incidental to the change process. They're always ever present in the change process.

The second option is wrong as well. Some stakeholders are decision makers and can influence the potential outcome of organizational restructuring. e.g board etc.

The third option is also incorrect. This is because stakeholder expertise in managing change should be considered by change leaders in the planning of adaptable organizational structures. Some stakeholders are expertise in change management and their knowledge is needed when there is planning of adaptable organizational structures.

That means we're left with only the Fourth option which is the right answer.

8 0
3 years ago
Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70
saveliy_v [14]

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

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7 0
3 years ago
You have been appointed head of marketing for Barry's Younique Yachts. Barry, the CEO, is interested in determining whether offe
Zielflug [23.3K]

Answer:

that he should reduce his prices. Yachts are luxury goods and therefore exhibit a high price elasticity of demand. Thus, reducing prices would increase revenue.

Explanation:

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An elastic demand means that a change in price would have a considerable impact on quantity demanded.

Therefore, if the price of the yachts which is a luxury good with high elasticity is reduced, demand for yachts would increase and revenue would increase.

7 0
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Taxes that have wealthy people pay a higher rate of tax than average or poor people are called Progressive tax. It is the type of tax that goes on increasing with increase of income. The people with higher income pays a higher amount of tax than the people with lower income. I hope the answer has helped you.
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The two basic sources of​ stockholders' equity are​ ________.
Radda [10]
<span>The two basic sources of​ stockholders' equity are​ paid-in capital and retained earnings. Stockholders' equity is represented by the equity stake that is held on the books by a firm's equity investors. Paid-in capital is the amount of money (capital) that is paid in by the </span>investors when common or preferred stock being issued. Retained earnings are shown as a percentage of the net earnings that are not paid out as dividends but kept in the corny to be reinvested. 
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