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Nikolay [14]
3 years ago
13

Assume the Crash Davis Driving School has a 13.1 percent ROE and a 30 percent payout ratio. Required: What is the sustainable gr

owth rate?
Business
1 answer:
Tamiku [17]3 years ago
8 0

Answer:

9.17%

Explanation:

sustainable growth rate = return on equity x retention rate

  • return on equity = 13.1%
  • retention rate = 1 - payout rate = 1 - 30% = 0.7

sustainable growth rate = 13.1% x 0.7 = 9.17%

A company's sustainable growth rate is the growth rate that the company can achieve without raising new capital either by issuing debt or stocks. It basically refers to how much the company can finance its current or future projects by investing its retained earnings.

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Connie, a single mother and home-business entrepreneur, enjoys running her own business. However, because she is busy balancing
VladimirAG [237]

Connie can best be described as Solo Operator type of entrepreneur.

Explanation:

Connie is a single mother who works from home on her small business which is her primary source of income but is ridden by the work of house and work which makes her unable to expand her business as she cannot invest enough time in it.

This is happening because she is a sole operator as in she has to take all the decisions and do all the work by herself with no additional help from anyone else whatsoever in the family or the work front either.

7 0
3 years ago
An economy is experiencing a recessionary gap. The government can​ ______.
Jobisdone [24]

Answer:

Increase expenditure or cut taxes to increase aggregate demand.

Explanation:

A recessionary gap is a macroeconomic term which portrays an economy working at a level underneath its full-employment equilibrium. Under a recessionary gap condition, the degree of real gross domestic product (GDP) is lower than the degree of full employment, which puts descending pressure on prices over the long haul.

6 0
3 years ago
A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of
Bumek [7]

Answer:

C. A capital expenditure.

Explanation:

This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.

These types of expenses are capitalized in the balance sheets under the original asset name and the asset is revalued by the improvement cost and stated at net book value + improvement.

Revised depreciation is then calculated on this new NBV as applicable with increased life of asset.

Hope that helps.

6 0
3 years ago
On january 1, george paid the $2,345 in taxes for the current year. if he sold the property on june 23 of that same year, how mu
m_a_m_a [10]
<span>June 23 is the 174th day of a non-leap year. 174 is 48.3% of 360, therefore George should pay 48.3% of $2,345 to the Government. The government thus owes George, and should credit him 51.7% of $2345, which amounts to $1212.37</span>
3 0
3 years ago
You were recently hired by RLM Inc. It is your job to prepare reports and analyze financial information related to the company.
Alex73 [517]

Answer:

d. management

Explanation:

Based on the job tasks described within the question it seems that you were recently hired as a management accountant. This role focuses on (like mentioned in the question) preparing reports and analyzing as much financial information as possible in order to best inform yourself, so that you can help you make the best and most strategic decisions for the organization. Which seems to by why RLM Inc. has hired you.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
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