How do I view my work schedule Six Flags?

High flyer, inc., wishes to maintain a growth rate of 16 percent per year and a debt-equity ratio of 0.90. the profit margin is

Xelga [282]

Answer: The dividend payout ratio is 46.19%.

We follow these steps in order to arrive at the answer:

We begin with the DuPont identity of RoE.

DuPont Identity:

$RoE = Net Profit Margin * Asset Turnover Ratio * Equity Multiplier$

Now,

$Equity Multiplier = \frac{1}{Debt Ratio}$

And Debt Ratio is also expressed as:

$Debt Ratio = \frac{D/E}{1+D/E}$

where D/E represents the Debt-Equity Ratio.

Substituting the value of D/E ratio from the question in the debt ratio formula above we get,

$Debt Ratio = \frac{0.9}{1+0.9}$

$Debt Ratio = \frac{0.9}{1.9}$ ----(1)

Substituting (1) in the equity multiplier formula above we get,

$Equity Multiplier = \frac{1}{\frac{0.9}{1.9}}$

$Equity Multiplier = \frac{1.9}{0.9}$

Substituting Equity Multiplier from above and the relevant numbers from the question in the DuPont identity we get,

$RoE = 0.048 * 1.08 * \frac{1.9}{0.9}$

$RoE = 0.10944$

The relationship between RoE and earnings growth rate g is given by the following formula:

$RoE = \frac{g}{(1-p)}$ , where p is the dividend payout ratio.

Plugging in the values in the formula above we get,

$0.10944 = \frac{0.16}{(1-p)}$

$1-p = \frac{0.16}{0.10944}$

$1-p = 1.461988304$

p = 0.461988304 or 46.19%

3 0

3 years ago

ABC, a U.S. company sends by fax an offer to sell to XYZ, a French company, 1,000,000 widgets for $1.00 a widget. XYZ sends back

galben [10]

Answer:

The correct option is B. False.

Further explanation is given below in the explanation section.

Explanation:

Offer From ABC Company to XYZ Company:

1,000,000 widgets to sell.

Selling Price of 1 widget = $1.00

Total Price = $1,000,000

Counter Offer from XYZ company to ABC Company.

Selling Price = $0.75

Total Price = 0.75 x 1,000,000 = $750,000

But in the end, ABC company sold its widgets to GHK company.

The correct option to this question is false.

This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.

XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.

5 0

3 years ago

Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. she sh

padilas [110]

Lamar should invest in a long-term, fixed rate certificate deposit, if she believes that interest rates are going to fall in the near future and remain low for a considerable period of time.

A long-term CD is generally a CD term between two and five years. Traditionally, long-term CDs have typically offered higher rates than shorter CD terms in exchange for tying up your money for a longer term.

Some institutions provide CD terms of up to 10 years or more, although this isn't as common.

To learn more about Interest,

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#SPJ4

4 0

1 year ago

George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors sh

3241004551 [841]

Answer:

The classification including its subject in question is outlined in the section given elsewhere here.

Explanation:

1...

Tax

Tax-Exempt Bonds: Municipal bonds gain financially by being able to benefit from income and sales taxes. This will give the company the added value with just paying taxes whenever the moment arises.
Taxable Bonds: Nonetheless, taxable bonds allow the borrower to pay county and national taxation, and therefore are usually sold to ventures that do not help the common person.

Rate of Return

Tax-Exempt Bonds: Municipal bonds, and perhaps tax-exempt treasuries, bring a lower cost of capital than that of the subject to tax paid great also because the investment company was also tax-exempt.
Taxable Bonds: Taxable investors consider a rate of profitability for the market. Because this yield is greater than those of mutual funds, measurements of yields are necessary on a constant schedule.

Net Taxable Income

Tax-Exempt Bonds: Throughout comparative analysis with either a municipal bond, developers could receive less profit with a taxable contract however if designers earn a lower profit margin.
Taxable Bonds: In comparison to something like a municipal bond, we might also receive less money with such a subject to tax contract even however we are accruing a higher rate of return.

Yield Comparison

Tax-Exempt Bonds: The proportion of tax deductible-equivalent production will always be lower than that of the subject to tax production.
Taxable Bonds: The portion of taxable-equivalent production would always be significantly greater than that of the exempt yield. It's indeed attributable to the deduction of residential mortgage taxes.

2...

The description prepaid benefit applies to any payment received in conjunction with and therefore is specifically due to, a debt that lasts past every end of the following term in which that payment is obtained. We implement the accounting method of the accounts under managerial statements.
Incorporation throughout Gross Income gets to decide underneath the accrual ability to earn instead of just receiving the products. Payment method income taxpayers cause prosecutorial misunderstanding over all the natural environment of revenue recognition.
The simplification of most courts assumes that revenue may accrue before or on before receipt but have never during the. Extra cash collected to proceed with productivity is therefore taxable instead of receiving.

6 0

3 years ago

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than

nexus9112 [7]

Answer:

ABC Company

1. Observation: Current year's inventory turnover is significantly lower than those of previous years.

Explanations:

1. Lower inventory turnover implies weaker sales for the current period than those of previous years.

2. Lower inventory turnover results from excessive inventory, which increases storage costs and interest expenses.

3. The ratio may also indicate that the demand for the product is declining rapidly. Many reasons can be adduced for this situation. Little marketing efforts, bad product, and lack of product competitiveness.

a) The formula for computing the inventory turnover equals Cost of goods sold/Average Inventory. The ratio shows the number of times goods are sold in a period. When goods are sold more frequently, sales activities increase, including revenue and profit.

2. Observation: Also current year's accounts receivable turnover is significantly lower than in previous years.

Explanations:

1. Billing inefficiency can contribute to lower accounts receivable turnover.

2. Poor credit policy may give rise to inefficient collection process, excessive bad debts, long credit days, bad customers, and lack of incentives to customers to settle their invoices.

3. Lastly, lower accounts receivable turnover may point to declining demand of the product by customers.

b) The formula for calculating the accounts receivable turnover is Net Credit Sales divided by Average receivables. The ratio determines the effectiveness of the company's credit policy.

6 0

3 years ago