Answer:
P0 = $174.3396226 rounded off to $174.34
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rate g2 is the constant growth rate D0 is the dividend paid today or most recently r is the required rate of return
P0 = 3 * (1+0.1) / (1+0.06) + 3 * (1+0.1)^2 / (1+0.06)^2 +
[(3 * (1+0.1)^2 * (1+0.04) / (0.06 - 0.04)) / (1+0.06)^2]
P0 = $174.3396226 rounded off to $174.34
A company has an EPS of $3.90, a book value per share of $39.00, and a market/book ratio of 3.0x. What is its P/E ratio
Answer:
P/R ratio = 30x or 30 times
Explanation:
P/E ratio is calculated by dividing the price per share by the earnings per share or EPS
P/E = Price per share / Earnings pet share
M/B = Market value per share/Book value pet share
3.0 = Market price per share / $39
3.0 × $39 = Market price per share
Market price per share = $117.
So, P/E ratio = $117 / $3.9
P/E ratio = 30x or 30 times
Given the following information, what is the growth rate of nominal GDP? Upper Y0 real GDP = $1000 (in millions) Upper Y1 real GDP = $1100(in millions) Upper Y 0 price level = 110 Upper Y 1 price level = 115 The growth rate of nominal GDP is
Answer:
A young person's top priority should be job security. d. ... markup (or cost-plus) pricing ... The demand curve for a good shows the same information as the demand ... For a given price range, which of the supply curves in the graph shown above is ... Calculate the growth in real GDP between years 1 and 2
Explanation:
the graph above shows the domestic market for sandalwood in equilibrium at a price of $800 per kilogram in the absence of international trade. now assume the country begins to engage in international trade, and sandalwood is selling at a price of $600 per kilogram in the world market. which of the following would most likely result?
Answer:
I looked for a similar question in order to get the graph and found the missing options also:
A) The country would increase domestic production to become competitive in the world market.B) The country would export sandalwood, and its domestic consumer surplus would increase.C) The country would export sandalwood, and its total surplus would increase, with the domestic consumer surplus increasing by more than the domestic producer surplus decreases.D) The country would import sandalwood, and its total surplus would decrease, with both the domestic consumer surplus and the domestic producer surplus decreasing.E) The country would import sandalwood, and its total surplus would increase, with the domestic consumer surplus increasing by more than the domestic producer surplus decreases.Options A, B and C are completely wrong, since the country would start importing sandalwood since the world price is lower until equilibrium is reached at $600 per kilogram.
That leaves us with options D and E. Option D must be ruled out because consumer surplus will increase while producer surplus will decrease.
The only option left is E:
sandalwood would be importeddomestic surplus increasessupplier surplus decreasesg An increase in the minimum wage reduces the total amount paid to the affected workers if the price elasticity of
Answer:
demand is elastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
If demand is elastic and minimum wage is increased, the demand for labour would fall. this would decrease the total amount of wages paid to workers
A preferred stock from Hecla Mining Co. (HLPRB) pays $3.10 in annual dividends. If the required return on the preferred stock is 6.10 percent, what is the value of the stock? (Round your answer to 2 decimal places.)
Answer:
$50.82
Explanation:
Hecla mining corporation pays an annual dividend of $3.10
The required return on the preferred stock is 6.10 percent
Therefore the value of the stock can be calculated as follows
= Annual dividend/ required rate of return
= 3.10 / 6.10÷100
= 3.10/ 0.061
= $50.82
Hence the value of the stock is $50.82
10. A permanent scholarship fund is started through a donation of $100,000. If five scholarships of $5,000 each are awarded each year beginning ten years from now, Calculate the rate of return for the invested money
Answer:
10 %
Explanation:
The rate of return for the invested money can be calculated as follows
100,000 = 5 (5,000) (P/F, i, 9)
i
Try i = 10%:
$100,000 compared to 250,000(0.4241)
Result: $100,000 < $106,025;
The Rate of return is too big
Try i = 12%:
$100,000 compared to 208,333(0.3606)
Result: $100,000 & gt; $75,125;
The Rate of return is too small
i ˜ 10.5%
From the following information, calculate: a. Net sales c. Gross profit from sales b. Cost of merchandise (goods) sold d. Net income Given: Gross sales, $36,000; sales returns and allowances, $2,800; beginning inventory, $5,900; net purchases, $6,800; ending inventory, $5,200; operating expenses, $8,100.
Answer:
a. Net sales = $30,100
b Gross profit from sales = $22,600
c Cost of merchandize(goods sold) = $7,500
d Net income = $14,500
Explanation:
Please find attached solution to the above questions and answers.
why do we feel love?
Answer:
We feel love because a relationship is what makes a human happiest. Its proven scienctficly. I can't spell :p
Explanation:
Which step follows the marketing mix step in the process of marketing management?
ОА
market research
ОВ.
market monitoring
OC marketing mix
OD. product development
OE identifying target markets
Answer:
market monitoring
Explanation:
After the marketing mix step, Implementation, monitoring, and control follows. The strategic marketing process is a continuous effort. Management should always be on the look for places to improve and enhance the plan. Market monitoring assists in pointing out specific opportunities for improvement.
Market monitoring requires the management to keep looking at the set goals and objectives to determine if the marketing process is heading in the right direction.
Ten municipal bonds were purchased with 9% nominal yield for settlement on February 1, 2015. The maturity date of the bonds is July 1, 2035. What is the number of days of accrued interest on the 10-bond trade
Answer:
For 2015, the number of days of accrued interest will be:
330 days.
Explanation:
The accrued interest on the municipal bonds purchased with 9% nominal yield for settlement on February 1, 2015 will be 330 days (360 - 30), based on 360 days for a year. The use of 360 days is based on day-count convention for municipal bonds while 30 days is used as the average for each month and 12 * 30 = 360 days. For example, if the bonds are worth $100,000, then the accrued interest will be equal to $8,250. This is calculated as ($100,000 * 9% * 330/360).
g MNVK Corp. purchased a computer system at a cost of $150,000 on January 1, 2020. The estimated useful life is 10 years, and the estimated residual value is $10,000. Assuming MNVK uses the double-declining-balance method, what is the depreciation expense for 2021
Answer:
MNVK Corp.
Depreciation expense for 2021 = $24,000
Explanation:
a) Data and Calculations:
Cost of computer system = $150,000
Purchase date = January 1, 2020
Estimated useful life = 10 years
Residual value = $10,000
Straight-line depreciation rate = 10%
Double-declining balance method rate = 10% * 2 = 20%
Depreciation expense for 2020 = $30,000 ($150,000 * 20%)
Balance after 2020 = $120,000 ($150,000 - $30,000)
Depreciation expense for 2021 = $24,000 ($120,000 * 20%)
b) The double-declining method is based on the straight-line depreciation rate, multiplied by 2. The method does not consider the residual value initially. It is towards the end of the useful life that the residual value is accounted for, to ensure that depreciation expense does not eat into it.
Pilot Motors Corporation is an automobile manufacturer. The company produces its own motors, tires, and other automobile parts. Pilot has the opportunity to purchase tires from another manufacturer instead of producing the tires in its own facility. This type of decision is typically known as a(n):
Answer:
Outsourcing decision
Explanation:
Outsourcing is a practice by companies where products or services are obtained from third parties rather than being obtained internally.
The main aim of outsourcing is to reduce cost.
When it is cheaper to obtain a service for a particular job role, rather than training new staff to fill the position. The company is practising outsourcing.
In the given scenario Pilot has the opportunity to purchase tires from another manufacturer instead of producing the tires in its own facility.
This is an outsourcing decision most likely to reduce cost of producing automobile parts internally.
XYZ Corp. has an operating profit margin of 7%, a debt burden of .8, and has financed two-thirds of its assets through equity. What asset turnover ratio is necessary to achieve an ROE of 18%
Answer:
the asset turnover is 2.14
Explanation:
The computation of the asset turnover is shown below:
As we know that
ROE = Leverage ratio × Asset turnover × Profit margin × Burden of debt
.18 = 1.5 × Asset turnover × .07 .8
.18 = .084 × Asset turnover
So,
Asset turnover = 2.14
The leverage ratio is
= 3 ÷ 2
= 1.5
Hence, the asset turnover is 2.14
You just turned 25 years old and want to retire when you turn 65. You expect to withdraw $90,000 per year for 25 years during retirement, starting first withdrawal one year after your 65th birthday. You expect to earn a return of 8% on your investments every year.
part 1 How much retirement saving do you need to have by 65th birthday to support the withdrawals in the next 25 years? Or the same question can be asked differently, what is the present value (as of your 65th birthday) of the withdrawals you expect to make?
part 2 How much money should you save each year if you make the first deposit one year from your 25th birthday and the last one on 65th birthday?
Answer:
Part 1 = $960,729.86
Part 2 = $3,708.57
Explanation:
Solution is attached as picture
A bank pays 5% with daily compounding on its savings accounts. Should it advertise the nominal or effective rate if it is seeking to attract new deposits?
Answer:
It should advertise the EFFECTIVE RATE
Explanation:
Based on the information given we were told that the bank pay 5% on a saving account that is daily compounded which means that if they are seeking to attract new deposits from their customers they should advertise the EFFECTIVE RATE reason been that the higher an amount or saving amount is been compounded annually the higher the effective rate will be which will inturn lead it to exceed the nominal rate.
Therefore they should go ahead an advertise the EFFECTIVE RATE because the rate is more higher than nominal rate.
A department store expects to have 225 customers and 19 employees at peak times in summer. Determine the contribution of people to the total cooling load of the store. The average rate of heat generation from people doing light work is 115 W, and 70% of it is in sensible form.
Answer:
Total cooling load = 28060 W
Explanation:
Number of customers in tn peak summer, N = 225+19 = 244
The average rate of heat generation from people doing light work = 115 W
The total cooling load of the store = Number of customer * Heat generation per people
The total cooling load of the store = 244 * 115 (W)
The total cooling load of the store = 28060 W
The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bond prices are quoted at $1014 per $1000 of face value and carry a 9% coupon. What is the firm's after-tax cost of debt if the tax rate is 30%?
Answer:
0.0611 or 6.11%
Explanation:
The computation of the after tax cost of debt is shown below:
But before that we have to determine the yield to maturity
Given that
NPER = 7 × 2 = 14
PV = $1,014
FV = $1,000
PMT = $1,000 × 9% ÷ 2 = $45
The formula is shown below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying it, the yield to maturity is
= 4.3643% × 2
= 8.72851%
Now After Tax Cost of Debt is
= 0.0872851 × ( 1 - 0.30)
= 0.0611 or 6.11%
What will the value be if the company borrows $132,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$484,950
Explanation:
The computation of the value of the firm after proceeding with the shares repurchase is shown below:
= EBIT × (1 - tax rate) ÷ cost of equity + borrowed amount × tax rate
= $81,000 × (1 - 0.35) ÷ 0.12 + $132,000 × 35%
= $438,750 + $46,200
= $484,950
Hence, the value is $484,950
We simply applied the above formula
And the same is to be considered
how to be good at accountant
Answer:
Know how to count and be very precise in mathematics.
Explanation:
Must know who's to do the job well, before even taking it
Hope this helps!!
:D
Thornton Company calculated its return on investment as 10 percent. Sales are now $460,000, and the amount of total operating assets is $480,000. Required If expenses are reduced by $44,400 and sales remain unchanged, what return on investment will result
Answer:
19.25%
Explanation:
The computation of the new return on investment is shown below:
But before that
The net income is
As we know that
Return on investment = Net income ÷ Total assets
10% = Net income ÷ $480,000
So, the net income = $48,000
Now if the expenses reduced by $44,400
That means the net income would increased by
= $48,000 + $44,400
= $92,400
So, the new return on investment is
= $92,400 ÷ $480,000
= 19.25%
A monopolist Group of answer choices produces the same units as the competitive outcome. has the same profits as what would have in a competitive market. produces more than the competitive outcome. has zero profits. produces less than the competitive outcome.
Answer:
Produces less than the competitive outcome.
Explanation:
In the market system, because it is understood in market pattern that since no competition is put in situ, the monopolist can find it easy to regulate the value and also the quantity demanded. it's also known that the very fact that he's the sole source of the said good, demand can easily be high for him thereby making supply really upthight; therefore there's low supply.
A key characteristic of a monopolist is that it is a profit maximizer.
A monopolistic market has no competition, meaning the monopolist controls the worth and quantity demanded.
The level of output that maximizes a monopoly's profit is when the differential cost equals the marginal revenue.
Check my work Check My Work button is now disabledItem 2Item 2 16.66 points In 1901, the first Green Jacket Golf Championship was held. The winner’s prize money was $330. In 2015, the winner’s check was $1,690,000. What was the annual percentage increase in the winner’s check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual percentage % If the winner’s prize increases at the same rate, what will it be in 2050? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
The annual percentage increase in the winner’s check over this period was 7.78%
It will be $23,266,067.23 in 2050
Explanation:
As per given data
Value of lottery in 1901 = $330
Winner's Check in 2015 = $1,690,000
Numbers of Years = 2015 - 1901 = 114 years
Use following formula to calculate annual percentage increase
Future value = Present value x ( 1 + annual percentage increase)^numbers of years
Where
Future value is Winner's Check value in 2015
Present value is Value of lottery in 1901
Place values in the formula
$1,690,000 = $330 x ( 1 + annual percentage increase)^114
$1,690,000 / $330 = ( 1 + annual percentage increase)^114
5,121.21 = ( 1 + annual percentage increase)^114
( 5,121.21 )^1/114 = 1 + annual percentage increase
1.0778 = 1 + annual percentage increase
Annual percentage increase = 1.0778 - 1
Annual percentage increase = 0.0778
Annual percentage increase = 7.78%
Use following formula to calculate the value in 2015
Future value = Present value x ( 1 + annual percentage increase)^numbers of years
Where
Present value = $1,690,000
Future value =?
Annual Percentage increase = 7.78%
Numbers of years = 2050 - 2015 = 35 Years
Place the value in the formula
Future value = $1,690,000 x ( 1 + 7.78% )^35
Future value = $23,266,067.23
g Long-run competitive equilibrium in an industry implies that no firm: Multiple Choice has an incentive to enter or exit the industry. is earning a normal profit. is earning accounting profits. is producing at the output level where price equals long-run average total cost.
Answer:
has an incentive to enter or exit the industry.
Explanation:
In a Long-run competitive equilibrium in an industry, no firm is earning abnormal profits but firms are earning normal profit or accounting profit. Also, there are no incentives to enter the industry as abnormal profits aren't earned in the industry. there are no incentives to leave because firms are earning normal profit
The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using
Answer:
The value proposition
Explanation:
The above is an example of value proposition because it demonstrates how the company place much emphasis on the value of the product it intends to produce and deliver to the target market.
Moreover, this positioning method has the target market as its key element, hence focus on adding value to its product by making use of natural ingredients for production. Value is a known method of positioning and most customers widely consider it when they make a purchase decision based on price and quality of the product.
In cost-volume-profit analysis, the unit contribution margin is: Multiple Choice Sales price per unit less cost of goods sold per unit. Sales price per unit less unit fixed cost per unit.
Answer:
Sales price per unit less cost of goods sold per unit
Explanation:
Unit contribution margin is usually expressed as unit selling price less all variable costs . Cost of Goods Sold varies with units sold and thus falls in the category of variable costs.
Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating. The corresponding risk-free rate is 3% and the market risk premium is 6%. Assuming a normal economy, the expected return on Rearden Metal's debt is closest to:
Answer: 4.6%
Explanation:
The options are:
A. 0.6%
B) 1.6%
C) 4.6%
D) 6.0%
From the question, we are told that Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating and that the corresponding risk-free rate is 3% and the market risk premium is 6%.
Assuming a normal economy, the expected return on Rearden Metal's debt will be:
= 3% + 0.26(6%)
= 0.03 + (0.26 × 0.06)
= 0.03 + 0.0156
= 0.0456
= 4.56%
= 4.6% approximately
Which function are local governments responsible for meeting?
ОА national security
OB. education
OC. space exploration
OD mail delivery
Answer:
the answer is edication
Answer:
OA. national security
Explanation:
Hope this helps!
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Given that Ron and Anne have taxable income of only $24,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return
Answer:
$2,485|
Explanation:
married filing jointly tax brackets for 2020 are:
Tax rate Taxable income bracket Tax owed
10% $0 to $19,750 10% of taxable income
12% $19,751 to $80,250 $1,975 plus 12% of the amount
over $19,750
Ron and Anne's tax liability = $1,975 + [($24,000 - $19,750) x 12%] = $1,975 + $510 = $2,485
Determine whether stock prices are affected more by long-term or short-term performance. Provide an example of the effect that supports your claim.
Answer:
Short term can perform better.
Explanation:
In the market, the performance of the stock is a very important and critical barometer that determines the company's health. The stock price of a company helps the investors to evaluate the earnings and the growth of his in the future.
Both short term and the long term performances of the company impacts the stock performance of the company. The stock price can both rise and fall in a short term performance or a long term performance.
However, for a short term performance, things are very volatile and there can be a lot of fluctuations in the stock prices. While a long term performance is smooth and is not volatile.
For example,
Suppose ABC Company decides to give a $2 dividend for one share (DPS) next year and we estimate this to increase by 6 percent per year thereafter. Now let us assume that the required rate of the return on the ABC Company stock is 10%. So currently, ABC Company stock is at a trading value of $12 for one share. So using the formula, now we can find the intrinsic value of 1 share of ABC Company stock is:
[tex]$\frac{2.00}{0.10-0.05}$[/tex]
= $40
Thus, ABC company stock is $40 for one share and now it is trading at a value of 12 dollar.
Thus from the above example, we can say that in short term, the stock can perform better.
Marlin Corporation reported pretax book income of $1,018,000. During the current year, the net reserve for warranties increased by $28,600. In addition, book depreciation exceeded tax depreciation by $101,800. Finally, Marlin subtracted a dividends received deduction of $16,800 in computing its current year taxable income. Marlin's current income tax expense or benefit would be:
Answer: See explanation
Explanation:
From your question, you didn't tell us the tax rate to use. Let's assume a tax rate of 34% is used.
The following can be deduced from the question:
Reported pretax book income = $1,018,000
Add: Increase in warranty = $28600
Add: Excess depreciation = $101,800
Less: Dividends received deduction = $16,800
Adjusted income = $1131600
Marlin's current income tax expense or benefit would be:
= 34% × $1,131,600
= 0.34 × $1,131,600
= $384,744