Answer:
10.85 percent
Explanation:
Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152
Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent
The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
Debentures are bonds that are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.
Are debentures backed by assets?
Because the issuer anticipates paying back the loans with money from the sale of the business initiative they helped fund, debentures are also known as revenue bonds. Debentures are not backed by tangible property or collateral. They have the issuer's full faith and credit as their only guarantee.
What is debenture and its characteristics?
An extended source of funding is provided by the debentures. They are made up of a protracted predetermined maturity phase. The debentures are typically repaid at the conclusion of their 10–20 year maturity period. The business returns the investor's principal investment amount at maturity.
Learn more about debentures backed by assets: brainly.com/question/14788206
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Answer:
Geometric Average return = 7.83%
Explanation:
First we need to find the missing value of data using Arithmetic mean formula
Arithmetic Mean = Sum of value / No of values
8.8% = Sum of Values / 4
Sum of Values = 8.8% x 4
Sum Values = 35.2%
Using Sum of Values we minus the remaining values in order to get the missing value of the data.
35.20% - 16.3% - 10.2%-(14.1%) = 22.80%
In order to get Geometric mean value we use geometric mean formula
G.M = 4 Sqrt(16.3% x 10.2% x -14.1% + 22.80%)
Geometric Mean = 7.83%
The account that’s compounded continuously is the better investment long-term because you accrue interest on top of interest on a daily basis which grows exponentially.
Answer:
I got a joke for you :)
Why do we tell actors to “break a leg?”
Because every play has a cast.
