Polytech, Inc. was listed on the NY Stock Exchange and on 12/31/18 and its PE ratio was 5.0 times. It currently has 100 shares outstanding. Its net income was $500 million dollars and its addition to retained earnings were $300 million dollars. It also paid out $200 million in dividend. Polytech, Inc. had in 2021 the sum of 750,000.00 in costs of goods sold.

A. Calculate its retention ratio for 2018

B. Calculate its dividend payout ratio for 2018

C. What do we need to know in order to calculate the internal growth rate of Polytech, Inc.?

D. Assume Polytech, Inc. had inventory turnover ratio of 2.50 times, what was its inventory in 2021?

Answer rating: 100% (QA)

A To calculate the retention ratio we need to know the formula which is Retention ratio Addition to ... View the full answer