Last year Lakesha's Lounge Furniture Corporation had an ROE of 19.0 percent and a dividend payout...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Last year Lakesha's Lounge Furniture Corporation had an ROE of 19.0 percent and a dividend payout ratio of 28 percent. What is the sustainable growth rate? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Sustainable growth rate 13.68 % Last year Lakesha's Lounge Furniture Corporation had an ROE of 19.0 percent and a dividend payout ratio of 28 percent. What is the sustainable growth rate? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Sustainable growth rate 13.68 %
Expert Answer:
Answer rating: 100% (QA)
To calculate the sustainable growth rate SGR we can use the formula SGR ROE 1 Dividend ... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these finance questions
-
Imagine your classmates are co-workers and the professor is the company owner. We are preparing to travel from the U.S. to Spain. We have been invited to deliver a presentation in this country to...
-
The treasurer of Kelly Bottling Company (a corporation) currently has $200,000 invested in preferred stock yielding 10 percent. He appreciates the tax advantages of preferred stock and is considering...
-
According to Electronic Designs 2012 Engineering Salary Survey, the mean base salary of a software engineering manager is $126,417the highest mean among all types of engineers. In contrast, a...
-
The focal length for red light that strikes a spherical concave lens is -15 cm. Referring to Figure 27-26, will the magnitude of the (negative) focal length for blue light be greater than, less than,...
-
A corporation enters into a $35 million notional amount interest rate swap. The swap calls for the corporation to pay a fixed rate and receive a floating rate of LIBOR. The payments will be made...
-
Pick any three of the sources of prospects discussed in the chapter and pick a product or service you like. Develop several ideas for how you would use each source to locate leads for the product or...
-
Affordable Lawn Care, Inc., provides lawn-mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared...
-
Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account in the following order: (1) beginning balance, (2) direct materials,...
-
Suppose that a customer were to purchase from Colonial Originals a furniture kit that has a catalog price of $99.95 and a shipping weight of 26.5 pounds. a. Using Table 3-3, determine the total cost...
-
Is adherence to 24-Hour Movement Guidelines associated with higher academic achievement among adolescent males and females? What are the IV(s)? What are the DV(s)? Can you easily determine the IVs...
-
The current price of Hatha Corp. (Symbol: HACK) stock is $10. The current date is t=0, and future times are t=1, t=2, and t=3. In each of the next three periods, HACK stock can increase by 20% or...
-
Rational functions can model key economic information for businesses. In manufacturing, start-up costs can be high because of the equipment required to make a product. Rational functions can model...
-
Zulu Ltd manufactures a single product whose cost structure is given below: Sh Sh Direct materials: Material ABA (2 kg @ Sh 25 per kg) Material BCA (3 litres @ Sh 75 per litre) Direct labour (4 hours...
-
Based on the following projections for a potential project, complete the Cash Flow Table. decimal places for all values. Estimated Sales (000s) Capital Investment Requirements (000s) Opening Balances...
-
7. Below is the Trial Balance of Manson Kotobre Company on 31 May, 2013. DR. CR. GH'000 GH'000 Stocks: 01/06/12 Finished goods Raw materials Purchases of raw materials Carriage outwards Carriage on...
-
What are the coordinates of P(0) if P(0) is a point on the unit 11n ? 6 circle and 0 =
-
An annual report of The Campbell Soup Company reported on its income statement $2.4 million as equity in earnings of affiliates. Journalize the entry that Campbell would have made to record this...
-
Sprint Nextel Corp stock ended the previous year at $23.36 per share. It paid a $2.37 per share dividend last year. It ended last year at $18.89. If you owned 500 shares of Sprint, what was your...
-
You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three years. If interest rates are 10 percent per year, what is the combined...
-
Show the time line for a $500 cash inflow today, a $605 cash outflow in year 2, and a 10 percent interest rate.
-
A bank offers customers the option of receiving interest compounded quarterly, semi-annually, or annually. If the rate of interest is the same, which is the best option for the customer?
-
The director of marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose from the following: a 15-year sponsorship paying \($100,000\)...
-
An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal the athlete will receive \($5,000\) each year for the first three years and \($6,500\) each year for the final...
Study smarter with the SolutionInn App