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%
When solving a present value equation using a financial calculator, the years for compounding should be entered as the n value on the financial calculator.
This n value from the question tells us is the number of years for compounding. That is also known as the number of periods.
If what the person is calculating is the loan values, then n has to be calculated based on the number of payments.
For example if a person wants to calculate a 12 year loan that that is to be paid monthly,
n would be 12*12 = 144
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Answer: on edge it's B the right to attend classes at a school...
Explanation:
Dell can fund this growth internally by:
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
<h3>
What is funding?</h3>
- Business financing is a funding option that allows business owners to obtain business loans to cover expenses such as temporary cash flow interruptions, expansion projects, stock and equipment, and seasonal spikes in activity.
- Retained earnings, debt capital, and equity funding are the three major sources of corporate financing.
So, according to the given chart:
- As a result, an additional operating asset of $794 million is required to sustain growth.
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
- As a result, we can confidently predict that growth will be funded internally.
Therefore, Dell can fund this growth internally by:
- The $469 million increase in current liabilities serves as a source of funds.
- The estimated increase in net profits to $395 million is approximately $123 million.
- The short-term investment is assumed to be the same as in 1996, namely $591 million.
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