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Angelina_Jolie [31]
3 years ago
6

0. Westcomb, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $

195,000. During the year, the company sold no new equity. Net income for the year was $72,000 and dividends were $44,640. What is the sustainable growth rate?
Group of answer choices

D. 18.01 percent

C. 17.78 percent

B. 18.24 percent

A. 15.32 percent
Business
1 answer:
Nadusha1986 [10]3 years ago
3 0

Answer:

18.24

Explanation:

Sustainable growth rate is the rate of growth a company can afford in the long term

sustainable growth rate = retention rate x ROE  

b = retention rate. It is the portion of earnings that is not paid out as dividends

Retention rate = 1 - payout ratio =

payout ratio = dividend / net income

retention rate = 1 - $44,640 / 72,000 = 0.38

Return on equity = net income / average total equity

= 72,000 / 150,000 = 0.48

g = 0.48 x 0.38 = 18.24%

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Anastasy [175]

Answer:

The answer is Duress.

Explanation:

Duress is a term in law used to justify a wrong action but excluding murder cases.

For a defendant to successfully prove he or she acted under duress, the following must be satisfied:

1. The defendant is in an immediate danger that could lead to death. For example, if Dreyfus shoots Eton by refusing, he can shoot Eton to death.

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As in the previous Participation Exercise, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condimen
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each bottle is sold for $5. The company recently had the following costs to produce 12,000 units of its product during August:

(1) Rent of $5,000 on a billboard to help advertise the product

(2) Rent on factory and equipment of $8,000

(3) Total payroll for hourly-paid, factory workers $24,000

(4) Tomatoes, onions, spices, and bottles $18,000

(5) Total payroll for salaried, administrative staff $6,000

The company sold 8,000 units.

A) First, we need to calculate the total and unitary cost of production:

Total cost= direct material + direct labor + factory overhead

Total cost= tomatoes, onions, spices, and bottles + Total payroll for hourly-paid, factory workers + Rent on factory and equipment

Total cost= 18,000 + 24,000 + 8,000

TC= 50,000

Unitary cost= 50,000/12,000= $4.17 per bottle

Now, we can calculate the cost of goods sold:

COGS= unitary cost* units sold= 4.17*8,000= $33,360

B) Income statement:

Sales= 8,000*5= 40,000

COGS= (33,360)

Gross profit= 6,640

Selling expense= (5,000)

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Net operating income= (4,360)

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3 years ago
Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT
IrinaVladis [17]

Answer:

the current bond price is $1,147.20

Explanation:

The computation of the current bond price is shown below:

Given that

NPER = 10

RATE = 6%

PMT = $1,000 × 8% = $80

FV = $1,000

Here we assume the future value be $1,000

The formula is shown below:

= -PV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the current bond price is $1,147.20

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Explanation:

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Answer:

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Firms must also not misrepresent the competitor's product as this can lead to legal action.

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