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Elza [17]
3 years ago
7

The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $4,400 Current assets $4,

677 Debt $9,351 Costs 2,904 Fixed assets 11,450 Equity 6,776 Taxable income $1,496 Total $16,127 Total $16,127 Taxes (35%) 524 Net income $972 ________________________________________ Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate
Business
1 answer:
hram777 [196]3 years ago
3 0

Answer:

3.88%

Explanation:

ROA = Net income/Total assets

ROA = $972/$16,127

ROA = 0.0602716

ROA = 6.03%

Retention ratio = 1 - Payout ratio

Retention ratio = 1 - 0.38

Retention ratio = 0.62

Internal growth rate = (ROA*Retention ratio) / [1 - (ROA*Retention ratio)]

Internal growth rate = 0.0602716*0.62 / 1 - (0.0602716*0.62)

Internal growth rate = 0.037368392 / 1-0.037368392

Internal growth rate = 0.037368392/0.962631608

Internal growth rate = 0.038818995

Internal growth rate = 3.88%

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Intro to Investing Math Quiz
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As a result of having increased from a price of $55 to $85, we can say that the stock value increased by<u> 54.55%</u>

The stock was valued at $55 then it increased to $85. First thing to do is to check how much it increased by in dollar terms:

<em>= New price - old price </em>

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In percentage terms, this is:

<em>= Increase/ Old price x 100%</em>

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<em>Find out more at brainly.com/question/10273187.</em>

4 0
3 years ago
DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his compet
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Answer:

Programmed decisions.

Explanation:

Decision-making is a process of selection from a set of alternative courses of action,which is thought to fulfill the objectives of the decision problem more satisfactorily than others.

Decision making can be regarded as the cognitive process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice.

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Joyce’s office building was destroyed in a fire (adjusted basis of $350,000; fair market value of $400,000). Of the insurance pr
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Answer:

$10,000 gain

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The computation of recognized loss or gain is shown below:

= Insurance proceeds amount - adjusted basis

= $360,000 - $350,000

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