1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
swat32
3 years ago
8

The blue giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and t

he debt-equity ratio is .54. What is the sustainable rate of growth?
Business
1 answer:
Lana71 [14]3 years ago
6 0

First we calculate the return on equity(ROE) based on the Du-pont equation

ROE =  Net profit margin * Total asset turnover * equity multiplier

Total asset turnover = 1/capital intensity =1/1.08

Equity multiplier = 1+ debt to equity = 1+ 0.54 = 1.54

net profit margin = 6.2% = 0.062

ROE = 0.062*1/1.08*1.54 = 0.0884 = 8.84%

Sustainable growth rate = ROE*(1- dividend payout)

Sustainable growth rate = 0.0884*(1-0.4)

Sustainable growth rate= 0.053 = 5.3%

Sustainable growth rate = 5.30%

You might be interested in
Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti
Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

   Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the \text{private benefits from the good are less than the social benefits} from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0
3 years ago
Assume that you pay $2,849. 84 in state property taxes every year. If your property has an assessed value of $41,302, what is yo
Alex787 [66]

The property tax rate for the assessed property of $41,302 is <em><u>0.069</u></em>.

The property tax is the value holding the property paid to the statement in the form of their charges or in the form of their state revenue.

Computation:

Given,

State property tax =$2849.84

The assessed value of property =$41,302

The tax rate is computed by dividing the tax amount by the actual value of the property.

\begin{aligned}\text{Tax Rate}&=\dfrac{\text{State Property Tax}}{\text{Assessed Value}}\\\ &=\dfrac{\$2,849.84}{\$41,302}\\\ &=0.069\end{aligned}

The tax rate upon which the property tax is paid is <em><u>0.069</u></em>, that is option d. is correct.

To know more about property tax, refer to the link:

brainly.com/question/855419

4 0
2 years ago
On January 1, Kirk Corporation had total assets of $851,000. During the month, the following activities occurred: Kirk Corporati
White raven [17]

Answer:

Ending balance of assets is $ 857,100

Explanation:

Computation of total assets of Kirk Corporation

Opening Assets                                                            $ 851,000

Purchase of equipment                                               $      6,100

Purchase of supplies for cash                                     $            0

Sale of land at cost                                                       $            0

Agreement for storage space                                     <u>$             0</u>

Ending balance Assets                                                $ 857,100

Purchase of equipment on credit increases assets

Purchase of supplies for cash is neutral. Supplies ( considered as included in inventory) is paid in cash asset increases and decreases

Sale of land at cost is also neutral for asset purposes

Agreement to rent storage space is not an executed transaction

8 0
3 years ago
Financial markets are generally recognized as being semi-strong form efficient, which means
bonufazy [111]

Answer:

The correct answer is letter "B": all publicly available information is reflected in current prices.

Explanation:

Within the Efficiency Market Hypothesis (<em>EMH</em>) the semi-strong market efficiency implies current stock prices reflect the public information made available in financial markets. According to this approach, the fluctuations in the stock price are the result of that information published and technical and fundamental analysis are useless in "predicting" stock price movements.

8 0
4 years ago
An organizational chart of a company shows vice presidents with responsibility for key areas such as design, manufacturing, sale
Romashka-Z-Leto [24]

Answer: Functional

Explanation: The functional structure of an organisational chart places people with similar skills who perform similar activities in a group under a common manager who answers to an executive a level up in the hierarchy who may oversee multiple departments. Therefore, an organizational chart of a company showing vice presidents with responsibility for key areas such as design, manufacturing, sales, marketing, and after-sales support would reflect a functional structure.

An advantage of the functional structure is that employees are allowed to focus their collective energies on executing their roles as a department but sometimes they might develop tunnel vision (seeing the company solely through the lens of the employee’s job function) and often at times there is a lack of inter-departmental communication.

6 0
3 years ago
Other questions:
  • Brianna received an overall iq score of 117 on the wechsler scale. this number means that brianna has scored more than ________
    15·1 answer
  • Goldberg Corporation has three production departments A, B, and C. Goldberg Corporation also has two service departments, Admini
    12·1 answer
  • Factor Co. can produce a unit of product for the following costs:
    10·1 answer
  • Q: What determines the balance of production and consumption?
    11·1 answer
  • The Work in Process Inventory account of a manufacturing company has a $11,625 debit balance. The company applies overhead using
    7·1 answer
  • An employee has​ year-to-date earnings of . The​ employee's gross pay for the next pay period is . If the FICAOASDI is ​% and th
    5·1 answer
  • The federal government played an important role in assisting the development of industry. True False
    7·2 answers
  • Which of the following characteristics of the Federal Reserve System BEST illustrates its decentralized structure?
    9·2 answers
  • Many companies moved their operations from new england and the midwest to locations in the south because
    9·1 answer
  • self-organization versus hierarchical organization — a mathematical investigation of the anarchist philosophy of social organiza
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!