Answer:
(a) 15.46%
(b) $11,904.11
(c) 6.15%
Explanation:
(a) Sustainable growth rate:


= 29.32%
Retention Ratio = 1 - Dividend Payout
![=1-[\frac{9,400}{17,300}]](https://tex.z-dn.net/?f=%3D1-%5B%5Cfrac%7B9%2C400%7D%7B17%2C300%7D%5D)
= 45.66%



= 0.15446
= 15.46%
(b) Additional borrowing:
New Total Asset = (Total debt + Total equity) × (1 + Sustainable growth rate)
= (77,000+59,000) × (1 + 15.46%)
= 157025.4


= $88904.11
Increase in Borrowing = New debt - old debt
= $88,904.11 - $77,000
= $11,904.11
(c) Internal growth rate:


= 12.72%



= 0.0615
= 6.15%
https://www.wiley.com/legacy/Australia/PageProofs/c02TheBusinessIdea_web.pdf
Answer:
The correct answer is D. People might withdraw money from interest-bearing accounts, making the interest rate rise, if there is a shortage in the money market.
Explanation:
In case of a shortage of money in the economy, where people who need to consume and produce do not have immediate liquid money to carry out their economic activities, individuals will withdraw the money invested in their accounts to have cash to cover their immediate needs. Thus, the level of money in circulation will increase, but at the same time the liquidity of investment accounts will fall, with which banks will tend to raise interest rates to recover investors and therefore cover the losses in their accounts.
Answer:
$148,000
Explanation:
Ellie's taxable income before the QBI deduction is greater than the $207,500 threshold, the W–2 Wages/Capital Investment Limit has to be considered.
20% of QBI = $900,000 x 20%
= $180,000
But no more than the greater of:
50% of W-2 wages
= $300,000 x 50%
= $150,000
25% of W-2 wages + 2.5% of the unadjusted basis of qualified property
= ($300,000 * 25%) + ($30,000 * 2.5%)
= $75,750
$75,750
Is not more than:
20% of modified taxable income
= $740000 x 20%
= $148,000
Ellie's QBI deduction for 2019 is $148,000.
Answer:
Beta= 1.17
Explanation:
Giving the following information:
Shirley Paul's 2-stock portfolio has a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.
To calculate the Beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (37,500/100,000)*0.75 + (62,500/100,000)*1.42
Beta= 1.17