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Nikolay [14]
2 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]2 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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Lisa always wondered why the shower in the upstairs bathroom suffered from low flow. She finally determined that the filters in
Aleonysh [2.5K]

The installation of the larger water softener corresponds to elevate the constraint in the TOC process.

Option C

<u> Explanation: </u>

An idea supported by Eliyahu Goldratt, which is the hypothetical base of inventory network the executives. TOC is a model that clarifies the effect on benefit from basic leadership by a store network regarding time. TOC is likewise a technique for overseeing bottlenecks.  

The "TOC (Theory of Constraints)" created by Eliyahu Goldratt is a technique for expanding throughput by overseeing "requirements" (bottlenecks). It is an idea that fills in as the hypothetical base of production network the executives and a model that clarifies the relationship of factors in business regarding how income based benefit is influenced by basic leadership in the inventory network concerning business forms as far as time.

As a figurative clarification, how about we utilize the case of "a gathering climbing", to depict the administration of improving throughput by utilizing the TOC .

4 0
2 years ago
Lawrence​ Industries' most recent annual dividend was ​$1.80 per share ​(D0equals$ 1.80​), and the​ firm's required return is 11
Dima020 [189]

Answer:

The price of the stock today is $34.13

Explanation:

The price of the stock that grows at two different growth rates can be calculated using the two stage growth model of DDM. The DDM requires to discount back the dividends to calculate the price of the share today.

The price of the stock today is,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]

P0 = 1.8 * (1+0.08) / (1+0.11)   +  1.8 * (1+0.08)^2 / (1+0.11)^2  +  

1.8 * (1+0.08)^3 / (1+0.11)^3  +  [ (1.8 * (1+0.08)^3 *(1+0.05) / (0.11-0.05)) / (1+0.11)^3]

P0 = $34.127 rounded off to $34.13

8 0
3 years ago
BruceCo is planning on selling coffee cups for $14 each. The company can buy the cups for $2.00 and have them printed for $1.50.
s2008m [1.1K]

Answer:

72

Explanation:

Add all the expenses together ( $2.00 + $1.50 + 0.50 +1,000 = 1004) divide 1004 by $14 to get 72

4 0
3 years ago
A customer purchases an item from an e-commerce site. The e-commerce site must maintain proof that the data exchange took place
tatiyna

Answer:

c. nonrepudiation of the transaction

Explanation:

Based on the information provided within the question it can be said that the  feature of digital signatures that is required is a nonrepudiation of the transaction. This refers to an assurance that the individual in question cannot deny that they made the transaction in question. This protects both the buyer and the seller as it prevents fraud and provides proof of the transaction.

3 0
3 years ago
Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem: Multiple Choice immediat
Svetach [21]

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem-<u> just before we begin the first production operation.</u>

<u />

Explanation:

Before we begin with any operational production function it is necessary to check the proper functioning of the machinery.If the machinery used for the production of the products have any defect then the cost of production increase leading to an overall increase in the production cost of the product.

Thus it is an important mandate to check the operational functionality of the machinery's which are involved in the production .It is advisable to find and fix the problem at the earliest ,so that the cost incurred can be minimized

Hence we can say that Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem-<u> just before we begin the first production operation.</u>

<u />

4 0
3 years ago
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