If the expected earnings per share are $12, what is the implied value of the ROE on future investment opportunities?

Answers

Answer 1

Answer:

15%

Explanation:

The computation of the implied value of the ROE is as follows:

As we know that

Growth rate = (RoE) × (1 - dividend payout ratio)

where,

The Growth rate is 5%

Dividend payout ratio = dividend per share ÷ earning per share

= $8 ÷ $12

= 66.66667%

Now

Growth rate = ROE × retention ratio

5% = ROE × (1 - dividend payout ratio)

5% = ROE × (1 - 0.666667)

ROE = 5% ÷ 1 - 0.666667

= 5% ÷ 0.333333

= 15%


Related Questions

Superfine Company collected the following data in preparing its cash flow statement for the year ended December 31, 2017: Amortization of bond discount $ 1,000 Dividends declared 22,500 Dividends paid 19,000 Gain on sale of equipment 3,000 Proceeds from the sale of equipment 5,000 Proceeds from the sale of treasury stock (carrying amount $32,500) 37,500 Purchase of BAS Inc. bonds (par value $100,000) 90,000 Required: Determine the following amounts that should be reported in Superfine’s 2017 statement of cash flows. What amount should Superfine report as net cash used in investing activities? What amount should Superfine report as net cash provided by financing activities?

Answers

Answer: a. ($85,000) ; b. $18500

Explanation:

a. What amount should Superfine report as net cash used in investing activities?

Sale of equipment = $5,000

Less: Purchase of bond = ($90,000)

Net cash used in investing activities = ($85,000)

b. What amount should Superfine report as net cash provided by financing activities?

Proceeds from treasury sold = $37500

Less: Dividend paid = ($19,000)

Net cash provided by financing activities will be: = $18500

which of the following is a step in the marketing process

Answers

a) understanding the market place and
customer needs and want
b) Designing A customer-Driven Marketing strategy
c) Build profitable relationships
d) capturing value from customers

What is a company likely to do if their celebrity endorser is involved in a scandal?
A.
wait and see what happens
B.
determine the nature of the scandal
C.
cancel the endorsement contract immediately
D.
give no comment to the news media

Answers

Answer:

I think its B. it can't be D and probably not A. And depending on how bad it is they may cancel but if they dont know what it is first then they shouldn't cancel the endorsement.

Answer:

C

Explanation:

I would think first they would determine the nature of the scandal & then decide how damaging it is to see whether or not if they have to drop the celebrity or not , some brands stick with their celebrities unless its really something bad.

mr kleaners acquired new industrial washing mavhine,the list price price of which was 52000.the supplier allowedva tade discount of 4000 off the list price.on delivery the cost of installing the machine in its desire location was 950
what is the cost if machine to be capitalised in the machinery account​

Answers

Answer:

I think its $48,950.

Explanation:

you subtract 4,000 from 52,000 which is 52,000 - 4,000 = 48,000.

then you will add that extra $950 getting you a total of $48,950.

if I'm wrong I'm sorry I'm not that good at math.

What is the difference between inflation and deflation.

A. Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.

B. Inflation can result from rising demand and boost the value of money. Deflation can result from failing demand and reduces the value of money.

C. Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boost the value of money.

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Answers

Answer:

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Explanation:

Inflation is the general increase in prices in the economy over time. As the economy grows, prices automatically rise. There is a direct correlation between economic development and inflation. A high growth rate may result in a high inflation rate. High growth is caused by an increase in demand for goods and services.

Inflation erodes the purchasing power of money. As prices increase, it means one unit of money will purchase fewer quantities of goods and services than the previous season.

Deflation is the opposite of inflation. It means a general decline in prices in the country. Low production due to reduced demand causes prices to decline. One unit of money will purchase more quantities of goods and services as prices decline.

Answer:

I believe the answer is D :)

Explanation:

How are SAE programs expanded and/or diversified?

Answers

Answer:

The SAE programs could be extended even diversified using the following techniques.  

Explanation:

Increased self-employment has led to something like the SAE programs.  Rather than growing the breadth of this. The concept seems to be the volume, gross margin, quantity of acres, respectively.  By introducing or growing new goods as well as companies. This would be referred to those as diversification.  Whilst also connecting to the awareness acquired via the SAE programs.

Marilyn is age 66, if she receives a $15,000 taxable HSA distribution this year, what tax penalty, if any, will apply?

Answers

Answer:

No penalty

Explanation:

The tax penalty is as follows

The HSA i.e. health saving account. It is opened so that the expenses related to the medical could be paid and the high health plan i.e. deductible  (HDHP) would not covered here

In the case when rules are not followed so there is a penalty of 20%

Given that the amount taxable is $15,000

So here the penalty would be

= $15,000 × 20%

= $3,000

But since Marilyn age is 66 so there is no penalty as the penalty would be applied till the age of 65

Allowance for Doubtful Accounts has a debit balance of $900 at the end of the year (before adjustment), and bad debt expense is estimated at 1% of credit sales. If credit sales are $950,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts
a. is $10,400
b. is $9,500
c. is $900
d. is $8,600

Answers

Answer:

a. is $10,400

Explanation:

The adjusting entry is as follows:

bad debt expense Dr ($950,000 × 1% + $900) $10,400

       To Allowance for doubtful debts $10,400

(Being bad debt expense is recorded)

here the bad debt expense is debited as it increased the assets and credited the allowance for doubtful debt is credited as it decreased the assets

Therefore the correct option is a.

Record the journal entry

Received October's rental bill of $1,300; set it aside.

Answers

Answer:

Note: The full question is attached below

S/No  Accounts titles and Explanation     Debit ($)   Credit ($)

A.       Accounts receivable                            5,200

                    Service revenue                                           5,200

          (To record the service revenue)  

B.         Cash                                                     3,100  

                    Service revenue                                             3,100

          (To record the service revenue)  

C.         Cash                                                      1,500

                    Unearned service revenue                           1,500

           (To record the advance received for the services to be provided)

D.         Cash                                                     4,600  

                    Accounts receivable                                       4,600

            (To record the collection of amount)  

E.          Rent payable                                        1,100

                     Cash                                                                 1,100

            (To record the payment of bill)  

F.           Rent expense                                        1,200

                    Rent payable                                                    1,200

             (To record the accrual of rent expense)

ways to improve productivity in the workplace

Answers

You need motivation..

Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talent agency.What is the total deductible amount of these expenditures?
$1,000 dinner with a film producer where no business was discussed
$500 lunch with sister Nicky where no business was discussed
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
A) $450.
B) $900.
C) $1,100.
D) $1,200.
E) $0

Answers

Answer:

A) $450.

Explanation:

The computation of the total deductible amount of the expenses is as follows:

In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting

As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction

Therefore the correct option is A.

Which method of project selection gives consideration to the time value of money in a capital budgeting decision?
A. Payback method.
B. Average rate of return.
C. Accounting rate of return.
D. Discounted cash flows method.

Answers

Answer:

D. Discounted cash flows method.

Explanation:

The discounted cash flow method is the method in which it discounted all the cash flows to their their present value

Also it provides the consideration with respect to the times value of money while taking decision related to capital budgeting

hence, the correct option is D

And all the other options are incorrect

A capital budgeting decision is a financial commitment and an investment, As by asking a project the business is taking commitments.  

TMV in capital budgeting is a decision through the discounting cash flow. The DFC is a method of valuing the social projects of the company along with the assets. They are estimated and discounted using the cost of capital.

Hence the option D is correct.

Learn more about the project selection gives consideration to the time value.

brainly.com/question/20347481.

Changes in technology can cause changes in the productivity of a resource. Technological change can be economy-wide, industry-specific, or can occur within one firm's production process. Explain how a change in the productivity of a resource changes the demand for the resource. Give an example.

Answers

Explanation:

Globalization is a worldwide phenomenon caused by technological changes, with a greater possibility of communication between countries, there was a revolution in business, which became much more profitable when they were present in several countries in the world. An example of a change in the productivity of a resource that has been directly impacted by technological changes is the cell phone industry.

The change in resource productivity occurs both internally and externally to this niche, since with the globalization and ease of doing business outside the organization's host country, there is a quest to make the global value chain, with a focus on labor and cheaper raw material.

It is also necessary to consider that in the cell phone industry, technological change has added new features to the product making the device that only made connections a smartphone, a device with multiple features and internet access, such as Apple, which with advanced technology reaches every more consumers around the world.

Résumés should include the following:

your contact information
education history
family history
work history

Answers

Answer:

Education history

Explanation:

When you are looking for a job more than liky the job wants to know what school you went to and what level of education you have. Most job said you can take it right after high school some other job tell you you have to go through college other what a whole different school or training you have to go through.

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called:

Answers

Answer:

Core deposits.

Explanation:

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called core deposits.

Basically, this type of deposit gives rise to a stable source of money (funds) used for lending by financial institutions such as banks to its customers. Core deposits include all active accounts by customers, certificate of deposits, money market deposits, time deposits, demand deposits, etc.

The main purpose of the core deposits is to ensure there are predictable costs and it can be used to measure a customer's loyalty.

The Office Supplies account is Select one: a. an asset, and it has a normal credit balance. b. a revenue, and it has a normal credit balance. c. an expense, and it has a normal credit balance. d. an asset, and it has a normal debit balance. e. a revenue, and it has a normal debit balance.

Answers

Answer:

C)

Explanation:

The letters in acronymic abbreviations must be

Answers

Answer:

In a correct order.

Explanation:

The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day. The average lead time to get a shipment of flour is 9 days with a standard deviation of 2 days. The owner of the bakery wants to maintain a service level of 95%.

z-value Probability
1.63 .9485
1.64 .9500
1.65 .9505
1.66 .9515
1.67 .9615
Which one of the following is true about the reorder point for flour?

Answers

Answer:

The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day is explained below in detail.

Explanation:

In my practice, it doesn't save capital, but it's still deserving it because it's wholesome and better than reserve purchased at the same amount.

For me, 1kg of all-purpose powder yields 1.6kg of bread (as two cubes). Each 13x4x4" (Pullman) loaf measures about 800 grams after freezing and yields between 22-30 slices related to its width. The value per loaf is under $1.00 and incorporates all components, charge, and electricity for mixing, baking, slicing.

I've created a few hundred loaves based on modifications of this formula:

                     %  grams   cost  calories sodium protein fat sugar

all-purpose powder    100  500   0.417  1833   0      50    17      0

   instant yeast    0.8    4   0.067    16   0       0     0      3

 non-fat dry milk      4   20   0.203    70   0       7    10    109

sugar      4   20   0.019    75   0       0    20      0

      canola oil     10   50   0.072   429  50       0     0

            salt      2   10   0.006     0   0       0     0   3933

           water     56  280   0.000     0   0       0     0      0

     dough total  176.8  884  $0.783  2422  50      57    47   4045

Question 2 of 10
Which of the following is an advantage of using a periodic inventory system?
A. It is less time consuming than other methods.
B. It is relatively easy and inexpensive to set up.

Answers

An advantage of using a periodic inventory system is that It is less time-consuming than other methods.

What is a periodic inventory system?

The periodic inventory system is a method of inventory valuation for financial reporting purposes in which a physical count of the inventory is performed at specific intervals.

What is a periodic inventory system for example?

Example of Periodic Systems. Periodic system examples include accounting for beginning inventory and all purchases made during the period as credits. Companies do not record their unique sales during the period to debit but rather perform a physical count at the end and from this reconcile their accounts.

Learn more about the periodic inventory system here:  https://brainly.com/question/25887081

#SPJ2

Which of the following colors is highly variable and can be either cool or slightly warm, depending on how it is used?

Answers

Explanation:

Dark blue with dark red

________ seem as a group to be mildly regressive, and ________ seem as a group to be mildly progressive.
A) Federal taxes; state and local taxes.B) Federal and state taxes; local taxes.C) Local taxes; federal and state taxes.D) State and local taxes; federal taxes.

Answers

Answer: D) State and local taxes; federal taxes.

Explanation:

States and local taxes are seen to be mildly regressive because low income earners typically pay a higher proportion of their income when compared to the high earners.

For the federal taxes, they are seen to be mostly progressive because the higher earners pay a larger part of their income when compared to the lower earners.

If a company invests in production improvement option D that will boost labor productivity by 50%, while its annual depreciation costs will rise by an amount equal to 10% of the investment costs associated with installing option D, it is accurate to say that its labor costs per pair produced will decline

Answers

Answer: from $8.00 per pair to $5.33 for a production facility in North America that currently has labor productivity of 5000 pairs per worker and total regular compensation (which does not include overtime pay) of $40,000 annually.

Explanation:

Since we have been informed that the labor productivity be boosted by 50%, since the production facility in North America currently has labor productivity of 5000, then the new labor productivity will be:

= 5000 (1 + 50%)

= 5000 (1 + 0.5)

= 5000 (1.5)

= 7500

Also, since total regular compensation was given s $40,000 annually, the labor cost will then be:

= 40,000 / 7500

= $5.33

Vault cash is equal to $1 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. The total currency in circulation is:__________.

Answers

Answer:

The total currency in circulation is $13 million.

Explanation:

This can be calculated using the following formula:

Total currency in circulation = Monetary base - Vault cash - Deposits by Depository institutions at the central bank ................ (1)

Where;

Total currency in circulation = ?

Monetary base = $15 million

Vault cash = $1 million

Deposits by depository institutions at the central bank = $1 million

Substituting the values into equation (1), we have:

Total currency in circulation = $15 million - $1 million - $1 million = $13 million

Therefore, the total currency in circulation is $13 million.

A machine that cost $86,400 and on which $63,600 of depreciation had been recorded was disposed of for $24,480. Indicate whether a gain or loss should be recorded, and for what amount.
Amount of Loss/Gain

Answers

Answer:

the gain on disposal of machine is $1,680

Explanation:

The computation of the amount of loss or gain is as follows:

Cost of Assets is $86,400

Less: Accumulated Depreciation ($63,600)

Book Value of Assts $22,800

Now the sale value of the asset is $24,480

So there is a gain of

= $24,480  - $22,800

= $1,680

hence, the gain on disposal of machine is $1,680

Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?

Answers

Answer:

the number of kanbans card sets required is 1.75 kanban sets

Explanation:

The computation of the number of kanbans card sets required is as follows:

Kanban cards is

= Average number of demand × lead time × (1 + Safety stock) ÷ Size of the container

= 5 × 1 × (1 + 0.40) ÷ 4

= 7 ÷  4

= 1.75 kanban sets

hence, the number of kanbans card sets required is 1.75 kanban sets

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.

Answers

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

HELP ASAP
Bank auditing is mainly done to
(Select all that apply.) Multiple choice
A. Curb money laundering
B. Insure deposits for all customers
C. Stop international finance crimes
D. Prohibit electronic trading arbitrage

Answers

A, B, C, D. That all

what are the three ways in which a government can intervene in a market​

Answers

Answer:

there

Explanation:

regulation, taxation, and subsidies.

Answer:

Explanation:

regulation, taxation, and subsidies.

Swift Co. produces footballs. It incurred the following costs this year:
Direct materials $35,000
Direct labor 31,000
Fixed manufacturing overhead 22,000
Variable manufacturing overhead 38,000
Fixed selling and administrative expenses 23,000
Variable selling and administrative expenses 14,000
What are the total product costs for the company under variable costing?
Total product costs under variable costing $ _

Answers

Answer:

Total variable cost= $104,000

Explanation:

Giving the following information:

Direct materials $35,000

Direct labor 31,000

Variable manufacturing overhead 38,000

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Total variable cost= 35,000 + 31,000 + 38,000

Total variable cost= $104,000

an increase In long run aggregate supply can be expected to _______ the price level and ______ the natural rate of unemployment.​

Answers

Answer:

fall is the answer for both blanks

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