Canadian Adventures Has Earnings Per Share of $2

question 94

Multiple Choice

Canadian Adventures has earnings per share of $2.86 and dividends per share of $1.80. The total equity of the firm is $750,000. There are 38,000 shares of stock outstanding. What is the sustainable rate of growth?

• A)2.14%
• B)3.31%
• C)4.94%
• D)5.37%
• E)6.59%

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Definitions:

Onboard Purchases

Transactions made during a flight or maritime voyage, typically involving snacks, meals, beverages, or duty-free products.

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A multinational leisure travel company, which operates a fleet of cruise ships and is considered one of the largest travel leisure companies in the world.

Supplier Power

The influence that suppliers may have over the businesses they supply, affecting terms, pricing, and availability of products or services, potentially impacting competitive dynamics in an industry.

Globalization

The process of increasing interconnectedness and interdependence among countries, typically with respect to economics, politics, and culture.