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Novosadov [1.4K]
2 years ago
7

Dishwasher’s Delights plows back 70.00% of its earnings to take on projects that earn the firm a rate of return of 14.00%. Dishw

asher’s stockholders require a return of 13.50% on their common stock. Earnings per share are expected to be $6.00 next year. a. What is the expected growth rate for Dishwasher’s common stock?
Business
2 answers:
Julli [10]2 years ago
6 0

Answer:

The growth rate in dishwashers common stock is 9.8%

Explanation:

The growth rate can be calculated by multiplying the company's ROE by the Retention Ratio commonly denoted as b

The retention ratio is given as 70%(plow back)

And we are told that the firm earns 14 % from projects taken using earnings

g = ROE * b

   = 14% * 70%

    =9.8%

inna [77]2 years ago
5 0

Answer:

= 9.80%

Explanation:

Plowback ratio fundamental analysis ratio that measures how much earnings are retained after dividends are paid out.

The expected growth rate equals the return on equity times the plowback ratio:  

We can use the relationship g = ROE × b to find the plowback ratio.

= 14.00% × 0.70 = 9.80%

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Red and White Company reported the following monthly data: Units produced 2,100 units Sales price $ 26 per unit Direct materials
Sloan [31]

Answer:

Under the variable costing fixed production overheads are treated as periodic costs and not included in closing stock. Amount $ Calculation Direct materials 1.00 Given Direct labor 2.

Explanation:

4 0
2 years ago
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0
2 years ago
Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp
Lelechka [254]

Answer:

Total deductible organization expenses  is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

= $ 6,611

3 0
2 years ago
Devon, the CEO believes that his staff just needs a little push by giving them an understanding of the importance of each of the
bonufazy [111]

Answer:

Task significance and feedback

Explanation:

The characteristic model of work is a methodology whose central objective is the motivation of the worker through his own work, but which must be challenging and allow the employee to develop his skills and competences through the performance of his work. There are five dimensions of the model, they are: Variety of Skills, task identity, task significance, autonomy and feedback.

In the case of the above question, Devon focuses on the significance characteristics of the task, by providing them with an understanding of the importance of each of their positions to the company, allowing them to also see each of their own direct impact. Because the significance of the task is the level that motivates employees through increasing their perception and appreciation of their work towards the central objectives of the company.

He also used feedback, as he believes that providing timely information about the performance of their job and letting them know the importance of their roles to the company will improve job performance. Using feedback helps employees to improve their perception of their performance and strive to achieve better results to company.

3 0
2 years ago
Starbucks has embraced ethical sourcing policies and purchases only Fair Trade Certified coffee. That means that if the least ex
Fittoniya [83]

Answer:

The correct answer is c. Realizing location economies.

Explanation:

According to the aforementioned, Starbucks only purchases certified coffee production that is produced by a reduced number of companies, which causes a direct dependence on this type of production, which causes a higher price than the competition and a very reduced cost structure, since if you think about global expansion you will not be able to negotiate with producers from the countries to penetrate due to this internal policy. The location economy ensures a series of advantages and aids in order to achieve a lighter operation for the benefit of the final consumer.

7 0
2 years ago
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