Question
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.
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?
Step by Step Solution
3.30 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
A To calculate the retention ratio we need to know the formula which is Retention ratio Addition to ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App