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Sauron [17]
3 years ago
9

The plowback ratio is: equal to net income divided by the change in total equity. the percentage of net income available to the

firm to fund future growth. equal to one minus the retention ratio. the change in retained earnings divided by the dividends paid. the dollar increase in net income divided by the dollar increase in sales
Business
1 answer:
Katena32 [7]3 years ago
7 0

The plowback ratio is "the percentage of net income available to the firm to fund future growth".

<u>Answer:</u> Option B

<u>Explanation:</u>

The plowback ratio is a basic ratio of evaluation that calculates what profit is maintained after dividends are paid out. Most often, it is called the retention ratio. Whereas the payout ratio determines how much is being paid out in dividends as a proportion of earnings.

The plowback ratio is computed by deducting 1 from the annual dividend quotient for each share and earnings per share (EPS). At the other hand, when estimating the dividend payout ratio it can be computed by assessing the leftover funds.

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Lori wants to give her daughter $25,000 in 8 years to start her own business. How much should Lori invest today, at an annual in
Dovator [93]

The amount of money that Lori should invest today is $13,506.72.

<h3>How much should Lori invest today?
</h3>

In order to determine the amount of money that Lori should invest today, the present value of $25,000 has to be determined. Present value is the sum of discounted cash flows.

Present value = $25,000 / (1.08^8) = $13,506.72

To learn more about present value, please check: brainly.com/question/26537392

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7 0
2 years ago
Hudson Co. reports the contribution margin income statement for 2019.
Studentka2010 [4]

Answer:

1. Contribution Margin = $576,000

2. Contribution Margin ratio = 25%

3. Break-even point = 5,400 units

4. Break-even point in sales dollars = $1,296,000

Explanation:

Requirement 1

If Hudson Company raises its selling price to $240 per unit, the contribution margin format income statements will be as follows:

                             HUDSON CO.

      Contribution Margin Income Statement

          For Year Ended December 31, 2019

Sales Revenue ($240 × 9,600 units)    =  $2,304,000

<em>less</em>: variable expense                         <u>  =  $(1,728,000)</u>

($180 × 9,600 units)

Contribution Margin                              =     $576,000

It increases due to the rise in sales price.

Requirement 2

We know,

Contribution Margin ratio = (contribution margin ÷ sales revenue) x 100

Given,

From requirement 1, we get, Contribution Margin = $576,000

And total sales revenue = $2,304,000

Putting the value into the above formula, we can get-

Contribution Margin ratio = ($576,000 ÷ $2,304,000) × 100

or, Contribution Margin ratio = 0.25 × 100

Therefore, Contribution Margin ratio = 25%

Requirement 3

We know,

Break-even point (in Units) = Fixed costs ÷ contribution margin per unit.

Given,

Fixed costs = $324,000

contribution margin per unit = sales price per unit - variable cost per unit

contribution margin per unit = $240 - $180

contribution margin per unit = $60

Putting the value into the above formula, we can get-

Break-even point (in Units) = $324,000 ÷ $60

Break-even point (in Units) = 5,400 units

It means, if Hudson company sells 5,400 units, there will be no loss or no profit.

Requirement 4

We know,

Break-even point in sales dollars = Break-even point sales in units × sales price per unit

Given,

From requirement 3, we get the break-even point sales in units = 5,400 units

Sales price per unit = $240

Putting the value into the above formula, we can get-

Break-even point in sales dollars = 5,400 units × $240

Therefore, Break-even point in sales dollars = $1,296,000

It means, if the total sales of Hudson company is $1,296,000, the company will receive no profit. It will not incur any loss too.

8 0
2 years ago
"A customer who is long 1 ABC Jan 40 Call wishes to create a "bear call spread." The second option position that the customer mu
irakobra [83]

Answer:

Short 1 ABC Jan 30 Call

Explanation:

Investors create a "bear call spread" by first purchasing a call option at a certain price (in this case 40), and then selling an equal amount of calls with a lower price (in this case 30). Both call options expire must expire at the same date. The investors will do this because they believe that the price of an asset will decrease, that is why it is called a bear spread.

5 0
2 years ago
Stream outflow is important to coastal landscapes because streams provide ________ to the coastal environment.
Alik [6]

The answer is “sediments”. Stream outflow is an important numerous coastline lands, because streams are the ones that provide sediments around the coastal location. Sediments are materials that may be made up of rocks and minerals, and may also contain animal and plant remains. It size may vary from a tiny grain of sand, into a large boulder sized rock. Sediments may be transferred into another place by water flows and erosions.

3 0
3 years ago
Complete the following data taken from the condensed income statements for merchandising Companies X, Y, and Z. For those boxes
spayn [35]

Answer:

Company X:

Sales :

= Gross Profit + Cost of goods sold

= 245 + 330

= $575

Operating expenses:

= Gross profit - Net income

= 245 - 30

= $215

Company Y

Gross profit:

= Sales - Cost of goods sold

= 1,270 - 790

= $480

Net income:

= Gross profit - Operating expenses

= 480 - 525

= $(45)

Company Z

Operating expenses :

= Gross profit - Net income

= 525 - (-20)

= 525 + 20

= $545

Cost of goods sold:

= Sales - Gross profit

= 970 - 525

= $445

7 0
3 years ago
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