Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 ... 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

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

More Books

Students also viewed these Accounting questions

Question

What do we need to know to start a business?

Answered: 1 week ago

Question

What do we need in order to value a coupon bond?

Answered: 1 week ago