the ropers are purchasing a home using va financing. the sales price of the home is $210,000. the crv comes in at $215,000. on what number will the va’s loan guarantee be based?

Answers

Answer 1

The answer is $210,000

The CRV comes at 215,000 but the actual price of the home is 210,000 and hence loan guarantee is given on 210,000 as the it is the actual price.

A VA loan could be a mortgage offered through a U.S. Department of Veterans Affairs program.

VA loans are available to active and veteran service personnel and their surviving spouses, and are backed by the centralized but issued through private lenders.

VA loans have generous terms, like no payment, no mortgage insurance, and no prepayment penalties.

This certificate of reasonable value helps when deciding and understanding the particular worth of the property to urge approval for a VA loan.

The US Department of Veteran Affairs has set the upper limit for VA Loans. Furthermore, to grasp and assess this property value, a Certificate of Reasonable Value is especially required.

With the assistance of this Certificate of Reasonable Value (CRV) for property, the veteran who is applying would be eligible to urge a VA loan to shop for the house.

The Certificate of Reasonable Value (CRV) for realty determines the most value of the property which you're buying and also helps to finalize the loan amount that has to be provided to the borrower.

The property evaluation is finished only by the US Department of Veterans Affairs.

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Related Questions

Which role would typically have the least amount of interaction with the customer?

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Top management role would typically have the least amount of interaction with the customer.

The top level has the least interaction with the customer, as they are busy implementing rules and regulations and taking the important decisions of the organisation. They are most important part of organisation.

They include the board of directors, managing directors and chief executive officer which are the sole and the role in decision makers of the firm and faces the least interaction as they are the top most unit of any organisation.

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The journal entry for adjustment of overallocated manufacturing overhead includes a ________.

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The journal entry for adjustment of overallocated manufacturing overhead includes a credit to cost of products sold.

In order to document a business transaction in the accounting records of the company, a journal entry is employed. A journal entry is often made in the general ledger, but it can also be made in a subsidiary ledger and subsequently rolled forward into the general ledger after being summarized. After then, the general ledger is utilized to produce the company's financial statements. Every company transaction should be recorded at least twice, or in double entry accounting, according to the logic behind a journal entry.

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Suppose the demand curve shifts to the right and the supply curve shifts to the right by more than the demand curve. the new demand curve will be and the new supply curve will be?

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Suppose the demand curve shifts to the right and the supply curve shifts to the right by more than the demand curve. The new demand curve will be high and the new supply curve will be high.

What happens to the demand curve when the supply curve shifts to the right?

The thing that happens to the demand curve when the supply curve shifts to the right is that based on the fact that the supply curve is generally said to be upward sloping, a shift of the demand curve will be said to be either upward or to the right will lead to  both a higher equilibrium price as well as equilibrium quantity.

Note that all of the curve can shift  to the right as well as to the left. A rightward shift is one that connote an increase in demand or supply. The implication of the above is that there is a higher quantity that is  is demanded, or supplied, at all of the  market price.

Therefore, Suppose the demand curve shifts to the right and the supply curve shifts to the right by more than the demand curve. The new demand curve will be high and the new supply curve will be high.

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you've done research on the competition in the area, and you worked for a sandwich franchise during college, so you're not entirely unfamiliar with the business. but you also know you've got a lot to learn, and you want to make the right decisions and make your business a success.

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The business plan for the given case will comprise of Executive summary, company overview, market analysis, products or services, marketing and, sales approach and financial projections.

More about business plan:

The explanation of above mentioned elements of a business plan is an executive summary is a succinct, engaging introduction to your company, its clients, and how you intend to make the organisation successful. An executive summary of your organisation that includes a mission statement, the address, and key personnel. Market analysis provides in-depth knowledge about your industry, target market, rivals, and laws that may affect your organisation.

In business plan products or services is a description of your goods or services, how they will satisfy the needs of your clients, and advantages over those of your rivals. Marketing and sales are a description of your marketing strategy and how you will locate new clients. Financial predictions outline how your company will fulfil its financial commitments and sustain a positive cash flow.

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When a company collects cash from an account receivable, cash ______. multiple choice question.

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When a company collects cash from an account receivable, cash increases and total assets are not affected.

What happens when cash is collected from an accounts receivable?

An accounts receivable is considered to be an asset to a company because it represents that people owe the company a certain amount of money. The company therefore has an ownership claim against the assets of the accounts receivable.

Cash is another asset of a company and it will increase when cash is collected from an accounts receivable. You therefore have a situation where accounts receivable decreased and cash increased. This means that assets increased and decreased by the same amount so the total amount of assets is not affected.

Options for this question include:

the asset accounts receivable increases stockholders' equity Increases total assets are not affected. liabilities decrease.

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The law of diminishing returns states that the marginal productivity of additional resources employed_________________.

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The law of diminishing marginal returns states that when an advantage is gained in a factor of production, the marginal productivity will typically diminish as production increases. An economic principle known as the law of diminishing returns states that as investment in a certain area increases.

The rate of profit from that investment can no longer increase at a certain point assuming other variables remain constant. The law of diminishing returns asserts that if the amount of the variable factor increases by a set rate in a production process where all other elements are fixed save one, the level of production will increase by a decreasing rate.

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If parts of a firm's intended strategy fall by the wayside, it is referred to as? emergent strategy. autonomous action. unrealized strategy. realized strategy.

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If parts of a firm's intended strategy fall by the wayside, it is referred to as Unrealized Strategy.

Unrealized Strategy: The elements of an anticipated strategy that were dropped are referred to as unrealized strategies.

Example:

When aspiring novelist David McConnell was having trouble making sales, he made the decision to give away free perfume as a marketing ploy.

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In the cost plus pricing approach the desired roi per unit is computed by multiplying the roi percentage by:_____.

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In the cost-plus pricing approach, the desired ROI per unit is computed by multiplying the ROI percentage by total assets.

The meaning of total assets is all the assets, or items of value, that a small business owns. Total assets include cash, accounts receivable (money you owe), inventory, equipment, tools, etc.

Determine your total assets by combining your liabilities with your equity. Since liabilities represent a negative value, the easiest way to find total assets with this formula is to subtract the value of equity or assets from the value of liabilities. The resulting figure equals your total assets.

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Perception is the process of using the ______ to acquire information about the surrounding environment or situation.

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Perception is the process of using the  senses to acquire information about the surrounding environment or situation.

What is perception?

Perception can be defined as the way of making use of the body senses organ such as the eyes, ears, nose tongue etc to obtain information about their environment.

This senses of the body are important or essential as they enables us to be aware of our surrounding.

Therefore Perception is the process of using the  senses to acquire information about the surrounding environment or situation.

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In mortgage lending, a borrower is required to pledge specific real property as security (collateral) for the loan in a practice called?

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A property is pledged as collateral for a loan through a process known as hypothecation, which does not give the lender the legal ownership of the item. In a mortgage, the bought property is used as security for the loan, but the lender retains ownership.

What Is a Hypothecation Example?

An investor who takes out a mortgage loan to buy an investment property would be an example of hypothecation. The asset is used as security for the loan. In the meantime, the investor receives the rental revenue it generates. However, if the investor doesn't make payments, the lender has the right to file for a foreclosure and seize the property.

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If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? what is this total amount expressed on a per unit basis?.

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Your question is incomplete. Here is the full question:

A Company's relevant range of manufacturing is 7,500 units to 12,500 units. The unit costs when it manufactures and sells 10,000 units are given below. If 8,000 units are made, what is the total manufacturing overhead cost incurred to support this production status?

Amount per unit ($)

Direct materials 6.00

Direct Labor 3.50

Variable manufacturing overhead 1.50

Fixed manufacturing overhead 4.00

Fixed selling overhead 3.00

Fixed administrative overhead 2.00

Sales commissions 1.00

Variable administrative overhead 0.50

Answer:

The total amount of manufacturing overhead cost incurred to support the level of production of 8,000 units is $52,000.

Explanation:

The following equation will help determine the total manufacturing overhead:

Total manufacturing overhead = Variable manufacturing overhead + Fixed manufacturing overhead

Total manufacturing overhead = ($1.50 per unit × 8,000 units) + $40,000

Total manufacturing overhead = $52,000

Note:

The fixed manufacturing overhead will be $40,000 ($4 * 10,000 units) within the range of 7,500 units to 12,500 units.

The manufacturing overhead of a business incorporates direct material, direct labor, and manufacturing overhead incurred during the transformation of raw materials into finished goods.

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item20 item 20 efficiency is , while effectiveness is . multiple choice using resources wisely; leading by example

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Efficiency is using resources wisely, while effectiveness is achieving results.

How are efficiency and effectiveness related?

When we are efficient, it means that we are using the resources at our disposal in a wise way. This ensures that we do not run out of that resource and are instead able to use it to produce more goods and services.

Effectiveness on the other hand, refers to being able to achieve the goals that are set. The ideal way to do things to to do it both efficiently and effectively as this ensures that we accomplish our goals while wasting the least amount of resources.

Options for this question include:

etting goals; using resources wisely achieving results; Investing in technology using resources wisely, leading by example using resources wisely: achieving results

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Starlight co. makes and sells only one product. the unit contribution margin is $8 and the break-even point in unit sales is 30,000. the company's fixed costs are?

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Starlight co. makes and sells only one product. the unit contribution margin is $8 and the break-even point in unit sales is 30,000. the company's fixed costs are  $2,40,000

Break even sales (unit) = Fixed cost/ contribution margin

30,000                           = Fixed cost /$8

30,000* $8                     = Fixed cost

$2,40,000                       = Fixed cost

Fixed cost is the cost which remains fixed and do not vary with the level of production. for examples salaries, loan repayment, electricity bills.

Break even point is defined as the point where company's revenue is equal to its cost. If sales is above break even point, it's profit for the company.

Contribution margin is defined as sales less variable cost.

Variable cost are the cost which vary with the level of production and often fluctuates.

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Complete the remaining columns in the chart by calculating the missing values for each
category. Round your percentages to the nearest tenth of a percent. Find percent of yearly budget rounded

Answers

The annual income tax percentage is 9.80%.

The required details for annual income tax  is given below

The average monthly cost of food is $650, and the cost of housing is $11,400 a year.

$900 is the cost of clothing per year.

The typical monthly cost of transportation is $500.

$14,400 is the yearly cost for insurance and medical.

$600 per year is the cost of an emergency reserve.

$50 is the average monthly cost to save for college.

As an additional option, the percentage can be computed by dividing each individual yearly cost by the entire cost, multiplied by 100.

eg.

Annual income tax % is equal to (400/4800) X 100.

= 9.80%

As a result, The average monthly cost of food is $650, and the cost of housing is $11,400 a year.

$900 is the cost of clothing per year.

The typical monthly cost of transportation is $500.

$14,400 is the yearly cost for insurance and medical.

$600 per year is the cost of an emergency reserve.

$50 is the average monthly cost to save for college.

As an additional option, the percentage can be computed by dividing each individual yearly cost by the entire cost, multiplied by 100.

eg.

Annual income tax % is equal to (400/4800) X 100.

= 9.80%

As a result, the annual income tax percentage is 9.80%.

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What operation management tools were used extensively in managing hard rock's rockfest?

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MS Project operation management tools were used extensively in managing hard rock's rockfest

This is further explained below.

What is MS Project?

Generally, The software for managing projects known as Microsoft Project is created and distributed by the software giant Microsoft.

It is intended to provide assistance to project managers in the processes of defining a schedule, allocating resources to tasks, monitoring progress, controlling the budget, and assessing workloads.

In conclusion, The administration of the hard rock festival made heavy use of the operation management tools provided by MS Project.

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According to the myers-briggs type indicator (mbti), which type of people want control and prefer order and structure?

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Myers Briggs type indicator (mbti) states that people who are judgment types seek order and structure and demand control.

An assessment tool used to determine a person's personality type, strengths, and preferences is the Myers-Briggs Personality Type Indicator. Isabel Myers and her mother Katherine Briggs created the quiz based on their research into Carl Jung's idea of personality types. One of the most frequently used psychological tools in the world today is the MBTI inventory.

The creation of the Myers-Briggs types, the 16 separate MBTI types, and the methodology behind this personality typing system are all covered in this article.

Jung's psychological type theory captivated Myers and Briggs, who also realized that the idea might be useful in the actual world. In the course of World War II, they started investigating and creating an indicator that might be used to understand individual variances.

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indicate where each item should be presented in the statement of cash flows using these four major classifications

Answers

Operating activity- Payments on interest on notes.

Investing activity- Sale of infrastructure at book value.

Financing Activity- Payments of dividend

Significant non-cash investing and financing activity- land exchange for patent.

The interest on a note payable is recorded as Interest Expense on the income statement. Typically, this refers to the amount incurred (rather than the amount paid) under the accrual basis of accounting.Book value is the cost of carrying an asset on a company's balance sheet, and it is calculated by subtracting the asset's accumulated depreciation. As a result, book value can alternatively be thought of as a company's net asset value (NAV), which is derived by subtracting total assets from intangible assets (patents, goodwill) and liabilities.A dividend payment is the distribution of profits by a firm to its shareholders. Dividends are normally given in cash, but they can also be paid in company shares, and they are frequently used by businesses to return excess profits to investors.

This is the statement of cash flows.

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Here's the full question:

Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.

(t/f) regular employees who have no malicious intentions are still a serious security threat to their organization.

Answers

regular employees who have no malicious intentions are still a serious security threat to their organization, The Statement above it True statement

Permanent Employees
Permanent employees are paid directly by the employer for whom they work. There is no set time when a permanent employee's employment will cease. In addition to their pay, workers frequently receive benefits like free or discounted health insurance, paid time off for holidays, vacation, or sick leave, or donations. Within their firms, permanent employees frequently have the option to change positions. Permanent employees of large organisations are typically shielded from unexpected job termination even when employment is "at will" by severance plans, such as advance warning in case of layoffs or formal punishment procedures. They could be able to join a union and benefit from their employment in terms of both social and financial perks.

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The law of demand states that price and ______________ are _____________ related, ceteris paribus.

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The law of demand states that price and quantity demanded are inversely related, ceteris paribus.

More about law of demand:

One of the most basic assumptions in economics is the law of demand. It explains how market economies distribute resources and establish the prices of goods and services that we encounter in daily transactions by combining the law of supply.

The quantity wanted is plotted on the x-axis versus the price on the y-axis to create the demand curve. According to the definition of the law of demand, the demand curve slopes downward. According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens.

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What+is+the+current+value+of+a+$1,000+bond+with+a+6%+annual+coupon+rate+(paid+annually)+that+matures+in+11+years+if+the+appropriate+discount+rate+is+12%?

Answers

An 11-year maturity for a $1,000 bond with a 6% annual coupon rate if the proper discount rate is 12%. $1,032.98 is the current value.

The discount rate has two unique meanings and applications, depending on the situation. The interest rate levied by the Federal Reserve Bank on short-term loans taken out by commercial banks and other financial institutions is known as the discount rate. The discount rate is the interest rate used in discounted cash flow analysis (DCF) to calculate the present value of future cash flows. Discount lending is a vital tool for monetary policy in the banking industry and is a part of the Fed's role as the lender of last resort. A project's financial viability can be determined by the discount rate, which in discounted cash flow analysis quantifies the time value of money.

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Disclaminar the question is

What is the current value of a $1,000 bond with a 6% annual coupon rate (paid annually) that matures in 11 years if the appropriate discount rate is 12%?

prepare sterling’s december 31 year-end adjusting entry to report its stock investments with insignificant influence at fair value. 2. after the fair value adjustment is made, prepare the assets section of sterling’s december 31 year-end classified balance sheet. assume sterling plans to sell its stock investments with insignificant influence within the next two months of the upcoming year. 3. in which income statement section is the unrealized gain or loss on the portfolio of stock investments with insignificant influence reported?

Answers

Sterling’s December 31 year-end adjusting entry to report its stock investments is

1) Journal Entry:-

Particulars Debit($) Credit($)

Fair Value Adjustment A/c ($25000-(1000*$23)) 2000  

Unrealized Holding Gain (Income Statement)   2000

   

2) Asset Section of Balance Sheet:-

Assets Amount($)

Short Term Investment:-  

Investment in Shares of LDX 23000

Add: Fair Value Adjustment 2000

Total 25000

3) In Income Statement Section Unrealized Holding Gain is reported under Other Comprehensive Income.

Unrealized Holding Gain Amount = $2000

When you have some savings to invest, feel equipped to shop for shares, and don't need the cash for at least 5 years, then yes, leap in. even when the marketplace has lows — and 2022 has been full of them — in case you're invested for the long term, you'll have time to get better losses.

The easiest way to shop for shares is thru an online stockbroker. After opening and funding your account, you could purchase stocks via the broking's website in a remember of mins. other options consist of the use of a complete-service stockbroker or buying a stock without delay from the company.

Yes, you could lose any amount of money invested in shares. A corporation can lose all its fees, with a view to probably translate right into a declining stock fee. inventory expenses also range relying on the delivery and call for of the stock. If an inventory drops to 0, you can lose all of the cash you've invested.

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when delivering a professional development, feedback from your audience is important for continuous improvement. other than a satisfaction survey, what are other methods you can use to collect feedback

Answers

Here are five ways to ask clients for feedback:-

Emails, questionnaires, focus groups, and other methods of gathering customer feedback are all acceptable.Customer comments received through digital platforms.

User Testing customer feedback is provided.

What exactly is client feedback?

Customer feedback is the knowledge, opinions, concerns, and suggestions that members of your community have expressed regarding their interactions with your business, goods, or services. Even (and especially) when it is unfavorable, this feedback can inspire good change in any firm by guiding changes to the customer experience.

Why is client feedback crucial?

Customer opinions are crucial since they act as a roadmap for your business' expansion. Don't you want to know what your customers think of your company in terms of what you're doing correctly and wrong?

You can uncover pearls that make it simpler to modify and improve the client experience over time in both the good and the poor. In other words, getting input is how you can continue to put your community first in all you do.

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what must an entrepreneur do after creating a business plan?open the businessfinance the businessfile the right paperworkidentify an opportunity

Answers

After setting up a business plan, an entrepreneur must finance the business.

What is entrepreneur ?

An individual who starts a new firm, taking on the majority of the risks and reaping the majority of the gains, is known as an entrepreneur. Entrepreneurship is the practice of starting a business. The entrepreneur is frequently viewed as an innovator, a source of fresh concepts for products, services, businesses, and operational methods.

Entrepreneurs are essential to the health of any economy because they have the knowledge and drive to foresee requirements and sell viable new ideas. Entrepreneurship that succeeds in assuming the risks involved in founding a firm is rewarded with money, notoriety, and chances for future growth. Failure in entrepreneurship leads in losses and diminished market presence for individuals engaged.

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Why are children at a disadvantage when participating in short-duration (10 to 90 second) high-intensity anaerobic activities?

Answers

Children are at a distinct drawback while collaborating in quick-duration (10 to ninety seconds) excessive intensity anaerobic sports because they produce much fewer glycolytic enzymes which might be required to assist sustained anaerobic strength.

Aerobic methods “with oxygen,” and anaerobic manner “without oxygen.” are vital to your usual fitness because they challenge your body in one-of-a-kind ways. Anaerobic exercise includes brief, rapid, excessive-depth sporting activities that don't make your body use oxygen as it does for cardio (or aerobic) sports.

The takeaway. while both aerobic and anaerobic workout has their location in a well-rounded fitness habitual, anaerobic workouts like HIIT can be greater effective for fat loss. in case you're incorporating HIIT and energy training, take into account that overall weight loss isn't always an accurate indicator of development.

Strolling, strolling, biking and swimming are examples of aerobic workouts. an aerobic hobby can be accomplished at quite a number of intensities over a time period: moderately extreme sports will increase your respiratory and coronary heart price, however, you must still be capable of performing a verbal exchange.

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Anaerobic workout is similar to cardio exercise but makes use of a one-of-a-kind shape of strength — quickly and right now. Anaerobic sports consist of excessive-intensity c language schooling (HIIT), weight lifting, circuit education, Pilates, yoga, and other varieties of power schooling.

Anaerobic exercise is a type of exercise that breaks down glucose in the body without using oxygen; anaerobic means "without oxygen". In practical terms, this means that anaerobic exercise is more intense, but shorter in duration than aerobic exercise.

Cardio exercising produces energy through the usage of continuous delivery of oxygen to maintain the modern-day level of activity with no need for extra energy from any other source. but anaerobic exercising prompts your frame to call for more electricity than your aerobic system can produce.

Kinds of anaerobic exercises

Weightlifting.

Leaping or leaping rope.

Sprinting.

High-intensity c language schooling (HIIT)

Biking.

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If+a+real+estate+investment+trust+(reit)+distributes+85%+of+its+net+investment+income+to+shareholders,+on+how+much+of+its+net+investment+income+must+the+trust+pay+taxes?

Answers

85% of a real estate investment trust's (REIT) net investment income must be distributed to shareholders, the trust must pay taxes on 15% of that net investment income.

A firm that owns, manages, or finances real estate that generates revenue is known as a real estate investment trust (REIT).

The capital of many investors is gathered through real estate investment trust, which are modeled after mutual funds. Without having to purchase, manage, or finance any properties themselves, this enables private investors to profit from real estate investments.

As a modification to the Cigar Excise Tax Extension, Congress established real estate investment trust in 1960. The clause makes it possible for investors to purchase shares in commercial real estate portfolios, an option that was previously restricted to the very rich and major financial intermediaries.

In general, real estate investment trust focus on a certain area of real estate. The portfolios of diversified and specialty REITs, however, could contain a variety of various property kinds, such as a REIT that owns both office and retail assets.

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The ________ bond amortization method allocates an equal portion of the total bond interest expense to each interest period. multiple choice question. straight-line effective interest equal allocation

Answers

'The straight-line bond amortization method allocates an equal portion of the total bond interest expense to each interest period.

In economics, amortization refers to spreading payments over multiple periods. The term is used by him for two separate processes: loan write-off and asset write-off. In the latter case, it refers to allocating the cost of the intangible over time.

Amortization is an accounting policy used to reduce the carrying amount of a loan or intangible asset periodically over a specified period. For loans, amortization focuses on the distribution of loan payments over time. Depreciation is similar to depreciation when applied to assets.

Amortization is the repayment of a debt in equal installments. Part of each payment goes towards the loan amount and part towards the interest. As the loan is amortized, the principal starts small and increases each month.

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on february ​20, cheesecake factory sold $1,000 of cheesecake factory gift cards. how will cheesecake factory​'s total liabilities be impacted by this​ transaction?

Answers

Total liabilities are all of the debts that an individual or company owes. They are divided into short-term, long-term, and other obligations. Total obligations plus equity on the balance sheet must equal total assets.

Total liabilities are the total debt and financial obligations due by a business to persons and organisations at any given moment. Obligations can be zero if all assets are backed by equity, so current assets surpass total liabilities. It is also very common for a corporation to have relatively low leverage, with existing assets financed not only by liabilities but also by equity. In a corporation, significant intangible assets are not documented on the balance sheet or recorded at their cost rather than market value.

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Exporting products overseas is an example of ________. a convertible trade fair trade a marketing mix strategy countertrade a market-entry strategy.

Answers

Exporting products overseas is an example of ________. a convertible trade fair trade a marketing mix strategy countertrade a market-entry strategy.

Countertrade is an example of exporting products overseas.

Describe countertrade.

A reciprocal kind of international trade known as countertrade involves exchanging one good or service for another in place of hard currency. In underdeveloped nations with few credit or foreign exchange options, this kind of international trade is more prevalent .Barter, counterpurchase, offset, switch trading, buyback, and compensation trade are the five categories. Companies engage in countertrade for three major reasons: (1) to fulfill a foreign government mandate; (2) to protect themselves from price and currency swings; and (3) to repatriate revenues from nations that have currency export restrictions.

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Before creating a workforce schedule, an operations manager should create what future time-horizon forecast?

Answers

Before creating a workforce schedule, an operations manager should create Short Range future time-horizon forecast.

What is workforce schedule ?

Workforce scheduling is defined as the process of creating hourly worker schedules to meet current and future demands in a workplace, such as a restaurant, hospital, or retail store. It also entails creating schedules so that the transition from one shift to the next is smooth and work continues uninterrupted.

Workforce scheduling is the foundation of smooth business operation in any industry that relies on hourly workers. And this scheduling must be efficient in order to accommodate last-minute changes such as tardiness in reporting for work and unexpected leave of absence, among other things. However, with scheduling automation on the rise and an increase in the number of apps available to manage scheduling large workforces, workforce scheduling can become more complex.

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assets and costs are proportional to sales. debt and equity are not. the company maintains a constant 30 percent dividend payout ratio. what is the internal growth rate?

Answers

The Internal growth rate equals to 5.73%.

What is an Internal growth rate?

It refers to the highest level of growth that is achievable for a business without obtaining outside financing

To calculate the internal growth rate, we need to calculate the ROA,

ROA = NI / TA

ROA = $3,420 / $37,850

ROA = .0904, or 9.04%

The plowback ratio, b, is one minus the payout ratio, so:

b = 1 - .40

b = .60

Internal growth rate = (ROA × b) / [1 - (ROA × b)]

Internal growth rate = [.0904(.60)] / [1 - .0904(.60)]

Internal growth rate = 0.0573

Internal growth rate = 5.73%

Therefore, the Internal growth rate equals to 5.73%.

Full word " Income Statement Balance Sheet

Sales $ 14,200 Current assets $ 11,100 Debt $ 15,600

Costs 8,500 Fixed assets 26,750 Equity 22,250

Taxable income $ 5,700 Total $ 37,850 Total $ 37,850

Taxes (40%) 2,280 Net income $ 3,420 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?"

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