Discuss the general factors that determine the rate of growth of any economic unit.
Answer to relevant QuestionsA firm is earning 24 percent on equity and has low business and financial risk. Discuss why you would expect it to have a high or low retention rate.The Shamrock Vegetable Company has the following results.Net sales ............ $6,000,000Net total assets .......... 4,000,000Depreciation ........... 160,000Net income ............ 400,000Long-term debt ...Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy.Discuss a scenario where it would be appropriate to use one of the present value of cash flow techniques for the valuation.The Shamrock Dogfood Company (SDC) has consistently paid out 40 percent of its earnings in dividends. The company's return on equity is 16 percent. What would you estimate as its dividend growth rate?
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