What is the sustainable rate of growth

Assignment Help Accounting Basics
Reference no: EM131975407

Question - The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth?

A. 12.90%

B. 8.60%

C. 12.00%

D. 2.40%

E. 16.32%

Reference no: EM131975407

Questions Cloud

Prepare an entry dated january to remove any balance : Prepare journal entries to record the preceding transactions. Also prepare an entry dated January 2, to remove any balance related to fair value adjustment.
What is the net working capital : A balance sheet has total assets of $1,930, fixed assets of $1,331, long-term debt of $705, and short-term debt of $240. What is the net working capital
Application question-income protection insurance : Under an income protection policy, Ellen Tucker, who has been disabled, is receiving $4000 a month. Ellen has made a good recovery
Classical explanation of the economy : In the classical model of the labour market, voluntary unemployment will increase if
What is the sustainable rate of growth : The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth
How much will you need to invest each month : If you can earn 1% per month, how much will you need to invest each month (for 30 years), starting next month, in order to reach your goal?
What is the amount of loan payment : What is the amount of your loan payment?
Income producing property : Given the following information regarding an income producing property, determine the NPV using levered cash flows in your analysis
What is the company cash cycle : Ives Corp. has an inventory period of 22.6 days, an accounts payable period of 37.7 days, What is the company's cash cycle

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd