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barxatty [35]
3 years ago
5

Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the debt

-equity ratio is 0.60. What is the sustainable rate of growth?
Business
1 answer:
AVprozaik [17]3 years ago
3 0

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.

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Capital goods are goods that will be used in the future to produce more goods and services. True or False
MissTica

Answer:

The statement is: True.

Explanation:

Capital Goods are <em>assets with more than one year of useful life</em> that are used to generate other goods and income. <em>Capital goods and assets</em> as terms apply to the same category of resources but the context defines which one is being used. In the context of economic analysis, <em>capital goods</em> are used to refer to the amount of capital goods purchased and used in the overall economy. <em>Capital assets</em> is a term that is used more commonly in accounting and finance.

3 0
3 years ago
The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw ma
ivanzaharov [21]

Answer:

TRUE

Explanation:

Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.

If the customers does not wish to pay the price, then there is no value.

So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.

Also storing of products is a non value activity as storing a product will not help the customer in any way and a customer will not pay for a product when it is stored and is of no use to the customer.

4 0
3 years ago
If consumers consider beer and wine substitute goods, the products would have a __________ cross-elasticity of demand and an inc
pshichka [43]

Answer:

The correct to the first fill in the blank is positive and answer to second fill in the blank is increase .

Explanation:

Cross price elasticity of demand can be defined as the measurement of change in quantity demanded one good that is in response to the change in price of another good.

Cross price elasticity of demand is said to be positive when the gods are substitute, which means that if there is an increase in price of one good than there will increase in demand of other good, same way if there is decrease in price of one good than there will be decrease in demand of other good.

7 0
3 years ago
In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. Who is the issuer
prohojiy [21]

Answers

a. Government bonds

Explanation:

Hungarian government is the issuer for these bonds and these are government bonds. The bond issuer is the borrower, while the bondholder or purchaser is the lender. At the maturity of the bond, bond issuers repay the bondholder the principal value.

4 0
3 years ago
If an american student purchases a calculator made by a mexican owned company located in arizona, what would happen to consumpti
Nesterboy [21]
They would increase.

Supposing that the Mexican owned company stays in the USA for more than a year, the student's expenditure will be accepted.
6 0
3 years ago
Read 2 more answers
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