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ExtremeBDS [4]
3 years ago
15

If a firm has a required rate of return equal to the ROE, Group of answer choices the firm can increase market price and P/E by

increasing the growth rate. the firm can increase market price and P/E by retaining more earnings and increasing the growth rate. the amount of earnings retained by the firm does not affect market price or the P/E. None of the options are correct. the firm can increase market price and P/E by retaining more earnings.
Business
1 answer:
mario62 [17]3 years ago
8 0

Answer:

the amount of earnings retained by the firm does not affect market price or the P/E

Explanation:

A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.

The rate of return is referred to as the annual return if the time period is typically a year.

If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>

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Economic agents who borrow funds are known as debtors ​, the funds that they borrow are referred to as credit ​, and this activi
Alja [10]

Answer: Loan-able funds market

Explanation:  

 The loan-able funds market is one of the type of economics based market that helps in determining the various types of supply an the demand loan- able funds in the market.

The borrowing an the crediting are the process that comes under the loan-able funds market activities. In this process, the people are borrowing the funds for the investment purpose instead of using in the personal consumption.  

 Therefore, Loan-able funds market is the correct answer.  

7 0
2 years ago
Inventory turnover is calculated as _____. a) cost of merchandise sold divided by inventory b) cost of merchandise sold divided
Molodets [167]

Answer:

B) cost of merchandise sold divided by average inventory.

Explanation:

Inventory turnover: It is a liquidity ratio that measures the number of times on average a company sold or replaced its inventory during the period. Computed as the cost of goods sold / by the average inventory on hand during the period. Analysts compute average inventory from the beginning and ending inventory balances. The ideal inventory turnover ratio is about 4 to 6, it is a rate at which restock item is well balanced with the sold inventory.

7 0
3 years ago
Calculate the values for each of the questions. Assume that in each country there are no taxes, international trade, or inflatio
Inessa [10]

Explanation:

a. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

1.5  = 1 ÷ 1 - MPC

So, MPC is 0.3333

Now the real GDP is

= Multiplier × Government spending

= 0.3333 × $70 billion

= $105 million

So the change in real GDP is

= $105 million - $70 million

= $35 million

b. The computation is shown below:

As we know that

Multiplier = 1 ÷ 1 - MPC

Multiplier  = 1 ÷ 1 - 0.6

So, multiplier is 2.5

Now the real GDP is

= Multiplier × Government spending

= 2.5 × $16 billion

= -$40 million

c. As we know that

Real GDP = Multiplier × Government spending

$280 billion = Multiplier × $70 billion

So, the multiplier is 4

Now the MPC is

Multiplier = 1 ÷ 1 - MPC

4 = 1 ÷ 1 - MPC

So, the multiplier is 0.75

3 0
3 years ago
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisio
anygoal [31]

Answer:

Effect on income= -$49,500

They lost the positive contribution margin increased by the fixed costs. Veronica is wrong.

Explanation:

Giving the following information:

Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,500.

Percy Division

Sales= $100,000

Cost of goods sold= 76,000

Gross profit= 24,000

Operating expenses= 49,500

Net income= (25,500)

In the Percy Division, the cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,000 variable and $20,500 fixed.

None of the Percy Division's fixed costs are avoidable.

Effect on income= -contribution margin - fixed costs

Effect on income= -(100,000 - 88,000) - 37,500= -$49,500

They lost the positive contribution margin increased by the fixed costs.

4 0
3 years ago
What will happen if the current asset price is greater than the present value of income? Question 2 options: Buyers will bid the
Inessa05 [86]

Answer:

The answer is:  Buyers will bid the asset's price down until it equals the present value of income.

Explanation:

As the current asset price is greater than the present value of income, it is overpriced.

So, seller is much willing to sell at this price, however, buyers does not want to buy asset at this price as they only want to purchase it at the price equals to the present value of its income.

So, Buyers will bid the asset's price down until it equals the present value of income which is the level they are willing to buy and also at which the seller is willing to sell also.

5 0
3 years ago
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