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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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The correct answer is Banks view franchises as having fewer risks than other start-up businesses.

Explanation:

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When I evaluate the possibility of franchising my business I have to be willing to assume a greater or lesser risk, that is, I am free to choose how much risk I am willing to accept in the development of my business model under the franchise scheme, and it is precisely this knowledge of the situation, which allows us to make the best decision about whether to expand my business (and under what conditions) or on the contrary wait for the business model to be at a more advanced stage of maturity before starting a project of franchise development.

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3 years ago
Assume the following adjustment data.
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Answer:

                                    Adjusting Entries

      Date    Accounts titles and Explanation     Debit   Credit

1.                  Supplies expense                            $500

                           Supplies expense                                  $500

2.                  Insurance expense                          $300

                              Prepaid Insurance                                $300

3.                   Depreciation expense                     $ 70

                                Accumulated depreciation                 $70

                                 - equipment

4.                    Unearned service revenue             $500

                                   Service revenue                                $500

5.                     Accounts receivable                      $200

                                   Service revenue                                $200

6.                      Interest expense                            $90                            

                                   Interest payable                                  $90

7.                      Salaries and wages expense        $1,700

                                   Salaries and wages payable               $1,700

8 0
3 years ago
WILL MARK BRAINLIEST
lana66690 [7]

Answer:

I think blank 1- is B but not sur.

<h2> <em>Hoping </em><em>you </em><em>have </em><em>a </em><em>good </em><em>day </em></h2>
5 0
3 years ago
Have a nice day! (and 100 pts)
zysi [14]
Thanks for the points!
5 0
2 years ago
Read 2 more answers
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