FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aberdeen Records Inc. wishes to maintain a growth rate of 12% per year and a debt-equity ratio of .30. Profit margin is 6.70 percent, and

Aberdeen Records Inc. wishes to maintain a growth rate of 12% per year and a debt-equity ratio of .30. Profit margin is 6.70 percent, and the ratio of total assets to sales is constant at 1.35. Is this growth rate possible? To answer, determine what the dividend payout ratio must be. How do you interpret the result?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance

Principles Of Finance

Authors: Besley, Scott Besley, Eugene F Brigham, Brigham

4th Edition

0324655886, 9780324655889

More Books

Students also viewed these Finance questions

Question

★★★★★
The beaker on the left below represents a buffer solution of a weak acid HA and its conjugate base, A. (Water molecules and spectator ions have been omitted for clarity.) a. Which beaker on the...

Answered: 1 week ago

Question

★★★★★
The variance in drug weights is critical in the pharmaceutical industry. For a specific drug, with weights measured in grams, a sample of 18 units provided a sample variance of s2 = .36. a. Construct...

Answered: 1 week ago

Question

★★★★★
Review secondary sources to get an overview of your topic.

Answered: 1 week ago

Question

★★★★★
Determine the number of periods for which the following annuity payments would have to be invested to accumulate to $20,000. Assume payments are made at the end of each period. Convert the number of...

Answered: 1 week ago

Question

★★★★★
QUESTION 26 The same adjustments are made for upstream and downstream sales concerning unrecognized profits in intra-entity inventory sales when an investor uses the equity method. True False

Answered: 1 week ago

Question

★★★★★
Calculate Kc for the following equilibria. (a) H2(g) + 12(g) = 2 HI(g); Kp 49 at 730. K (b) 2 SO2(g) + O2(g) 2 SO3(g); Kp = 2.5 1010 at 500. K

Answered: 1 week ago

Question

★★★★★
EtherChannel technology can be used to achieve higher bandwidth by using link aggregation. Explain briefly how EtherChannel can be also used in a switched network to achieve load- balancing

Answered: 1 week ago

Question

★★★★★
One of Arianna's co-workers repeatedly makes graphic comments about her body. He also texts nude images of himself to her cell phone. Arianna has likely experienced Quid pro que harassment. Hostile...

Answered: 1 week ago

Question

★★★★★
Does M - KOPA have the basis for a sustainable competitive advantage? If so , what is that basis? If not, why not?

Answered: 1 week ago

Question

★★★★★
Scenario 4: Dresses-We-Sell Dresses-We-Sell offers a line of upscale evening dresses in a boutique. The store charges $500 per dress and sales average 20 units per week. Currently, they order 80...

Answered: 1 week ago

Question

★★★★★
The standard overhead cost for a product manufactured by SCOMAN1 Corporation is given below: Variable overhead 2hrs@P10/hr Fixed overhead 2hrs@P5/hr Total Standard overhead rate PER UNIT P 20 10 P 30...

Answered: 1 week ago

Question

★★★★★
1/ "An organization can always be sued in the same way as a person." Is that statement true? Explain your answer. 3/ "'Certification' refers to a process or decision that always brings a lawsuit to...

Answered: 1 week ago

Question

★★★★★
8. What values do you want others to associate you with?

Answered: 1 week ago

Question

★★★★★
15. Now rank from 1 to 5 the areas that you think are most important to emphasize when communicating with others (1 is least important and 5 is most important to you). If you think it all depends on...

Answered: 1 week ago

Question

★★★★★
12. The form of creative action strategy, where would you say you have a strength, as a dreamer, as a realist or as a critic?

Answered: 1 week ago

Previous Question Next Question