1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
What is the difference between excluded services and services that are not reasonable and necessary?
Kitty [74]
Excluded services are those services which health insurance companies do not pay for. Those services may be needed or necessary but they are not covered by the health insurance plan and the person concerned will have to pay for the service himself. Services that are not reasonable or necessary refer to those services which are not deem necessary in the treatment of a patient.
8 0
3 years ago
Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o
AysviL [449]

The answer is<u> "political risk".</u>


Political risk is among the most critical hazard factors confronting international investors. In many rising and frontier markets, the political circumstance is altogether less steady than the United States with the potential for across the board extortion and defilement.  

Political risks  are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0
2 years ago
ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it wil
emmasim [6.3K]

Answer: offset

Explanation:

An offset is a countertrade agreement whereby a company offsets the hard currency purchase of a product that is unspecified from a particular nation in the future.

An offset involves the seller helping in marketing products that are manufactured by the buying nation or allowing part of the assembly of the exported product's to be carried out by the manufacturers in the buying nation.

Offset is common in defense, aerospace, and some infrastructure industries and it is common for larger and expensive items.

6 0
3 years ago
Which group would most likely dislike a city ordinance that bans loud vehicles?
weqwewe [10]
The correct answer of the given question above would be the MOTORCYCLE DRIVERS. The group that would most likely dislike a city ordinance that bans loud vehicles are motorcycle drivers. Often times, motorcycles create loud noises in the public street which create disturbance especially in those places where loud sounds are prohibited. Hope this answer helps.
3 0
3 years ago
Read 2 more answers
Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor tha
cestrela7 [59]

Answer:

As a result of the price floor, price would increase. As a result, quantity demanded will decrease and the quantity supplied would increase.

Supply would exceed demand and as a result there would be an excess supply of fish.  

As an alternative to the price floor, the government can subsidise the cost of fishing. This would reduce the cost of producing fish

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

6 0
3 years ago
Other questions:
  • Credit card A has an APR of 12.5% and an annual fee of $48, while credit card B has an APR of 15.4% and no annual fee. All else
    5·1 answer
  • Brittany sold her stock (the basis of $60,000) to her brother, Ridge, for $35,000, the fair market value. Her brother subsequent
    13·1 answer
  • Which is a step in the research process?
    10·1 answer
  • In Year 1, the actual budget deficit was $200 billion and the standardized deficit was $150 billion. In Year 2, the actual budge
    15·1 answer
  • A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred stocks are current selling
    14·1 answer
  • Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discover
    9·1 answer
  • Joe is an accountant and plans to join a group of accountants. he compares a group in a general partnership with a group in a li
    5·1 answer
  • Seller Kim tells her agent Greg that she would be willing to accept $185,000 on her $205,000 listed home. There are no offers on
    14·1 answer
  • Zoe runs a flower shop. She recently made some changes so that one employee answers phones and completes the order and payment p
    15·1 answer
  • Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month? A La
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!