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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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Answer:

<u><em>But where do we go from here? </em></u>

It depends on the result of more government intervention on quality life standards.

<u><em>Do we need less or more government involvement? </em></u>

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<u><em>Is it a question of the quality of that involvement?   </em></u>

Yes. If government has an effective involvement there is even desirable to have its intervention but if it complicates everything then is repeled.

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Yes, because it is proved that the economy acts in an effective way to good policy making.

<u><em>How can the cost of government involvement decrease?</em></u>

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5 0
3 years ago
27. Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curve
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Answer:

Explanation: Both the marginal cost curve and the average variable cost curve are U-shaped. For many firms, this is true because their production exhibits increasing returns at low levels of output and decreasing returns at high levels of output. At the minimum of average cost, the marginal cost curve intersects the average cost curve. This is because when marginal cost is above average cost, average cost is decreasing and when marginal cost is below average cost, average cost is decreasing.

6 0
3 years ago
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Which financial statement tells you the value of the assets the company owns and the liabilities a company owes?.
Pavel [41]

Answer:

Balance Sheet

Explanation:

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4 0
2 years ago
A company had beginning inventory of 12 units at a cost of $15 each on March 1. On March 2, it purchased 12 units at $24 each. O
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Answer:

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Explanation:

In the given question,  

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On March 2 it purchase 12 units for $24 = 12 units × $24 = $288

On March 6 it purchase 7 units for $20 = 7 units × $20 = $140

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The 28 units could be taken from  

12 × $15 = $180

12 × $24 = $288

And remaining 4 units × $20 = $80

So, the total cost of units sold = $180 +$288 +$80 = $548

4 0
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Answer:

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7 0
2 years ago
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