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Gilmore, Inc., had equity of $155,000 at the beginning of the year. At the end of the year, the company had total assets of $310,000. During the year, the company sold no new equity. Net income for the year was $33,000 and dividends were $4,200. |
| a. |
What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | What is the sustainable growth rate if you use the formula ROE × b and beginning of period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c. | What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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In: Finance
Imagine that you here that the expectation for the next year is that the U.S. dollar is going to strengthen against the Euro over the next five to ten years. You believe in the theory of purchasing power parity, having this in mind explain whether you expect inflation in the United States to be higher or lower on average compared with that in the Euro zone over the abovementioned period.
In: Finance
An investment will pay $292,600 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 10% over the same period, should this investment be made?
A. Yes, because the investment will yield $75,240 more than putting the money in a bank.
B. No, because the investment will yield $83,600 less than putting the money in a bank.
C. Yes, because the investment will yield $66,880 more than putting the money in a bank.
D. Yes, because the investment will yield $83,600 more than putting the money in a bank.
In: Finance
Consider a mutual fund with $300 million in assets at the start of the year and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year-end value, then the rate of return on the fund is %.
Please enter your answer with TWO decimal points.
In: Finance
You put up $60 at the beginning of the year for an investment. The value of the investment grows TO $62.4 and you earn a dividend of $3.50. Your HPR was ____, capital gains yield was ____ and dividend yield was _____.
| A. | 5.83%, 4%, 1.83% | |
| B. | 11%, 5%, 6% | |
| C. | 4%, 3%, 1% | |
| D. | 9.83%, 4%, 5.83% | |
| E. | 1.83%, 1%, 0.83% |
In: Finance
The owner of a bicycle repair shop forecasts revenues of 216000 a year. Variables cost will be $64000 rental cost for the shop are 44,00 a year . Depreciation on the repair tools will be $24000.
A. Prepare an income statement for the shop base on the estimate. Tax rate is 20%
B. Calculate the operating cash flow for the repair shop using the three methods given below Dollars in minus dollars out Adjusted accounting profit Add back depreciation tax shield
In: Finance
A partnership began its first year of operations with the following capital balances:
Young, Capital: $143,000
Eaton, Capital: $104,000
Thurman, Capital: $143,000
The Articles of Partnership stipulated that profits and losses be assigned in the following manner:
Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.
Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year
The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.
Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.
What was Young's total share of net income for the second year?
Select one:
a. $17,160 income.
b. $4,160 income.
c. $19,760 income.
d. $17,290 income.
e. $28,080 income.
In: Accounting
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The balance of Accounts Receivable is $180,000. The company estimates that 5% of accounts receivable will not be collected over the next year.
Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
In: Accounting
The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling, (b) administrative, or (c) other?
Advertising expense
Depreciation expense on store equipment
Insurance expense on office equipment
Interest expense on notes payable
Rent expense on office building
Salaries of office personnel
Salary of sales manager
Sales supplies used
In: Accounting
In: Accounting