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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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I believe the correct answer is job performance.
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3 0
2 years ago
Elmdale Company has a machine that affixes labels to bottles. The machine has a book value of $80,000 and a remaining useful lif
AveGali [126]

Answer and Explanation:

The preparation of the analysis  showing whether the old machine should be retained or replaced is presented below:

Particulars           Retained equipment       Replace equipment     Change in the net income

Variable cost        $1,560,000                 $1,230,000                $330,000

                  ($520,000 × 3 years)       ($410,000 × 3 years)

Cost of the new

machine                                                         $300,000                        -$300,000

Net change                                                                                               $30,000

As we can see the amount comes in positive which reflects that the machine should be replaced

3 0
2 years ago
A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout fr
valentinak56 [21]

Answer:

$19.95

Explanation:

Breakeven is where when total Cost = Total Revenue,

Let Selling Price = X

Total Revenue = Total cost

X*800 = 10,600+6.70*800

800x = 15960

Hence, selling Price(X) = 15960/800 = $ 19.95

4 0
2 years ago
Read 2 more answers
During Year 1, Long Beach Corporation completed the treasury stock transactions described below: Jan. 2 Reacquired 1,000 shares
Rufina [12.5K]

Answer:

Explanation:

A journal entry is an accounting record of the business day to day activities in the accounting books of that particular business. An appropriately recorded journal entry comprise of the amounts to be debited and credited, correct date, the description of the transaction and a distinctive reference number.

The solution diagram to the question can be seen in the image below

6 0
2 years ago
Like many students at college, Arturo struggles to find a parking space on campus. Every year he has to buy a parking permit, wh
wolverine [178]

Answer:

a. 4,000 parking spaces

b. $10 per day

c. 4,000

Explanation:

a.  If students pay for a permit, and not a daily fee:

the demand equation is Qd = 10,000 and Qs = 16,000

So, the shortage is

= 20,000 - 16,000

= 4,000 parking spaces

b. If the university charges a daily fee so the equation will be

Qd = Qs

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4,000 = 400P

P = $10 per day

c. An increase in demand will be

Qd = 24,000 - 400P

To keep the price at $10

Qs = 24,000 - 400 × (10)

= 20,000

now,

More spaces required is

= 20,000 - 16,000

= 4,000

7 0
2 years ago
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