Answer:
The answer is "$86.44".
Explanation:
The more recent dividends paid [tex]= \$ \ 3.85[/tex]
Level of growth [tex]= 4 \%[/tex]
Required returns level for a first 3 years = 12 [tex]\%[/tex]
Required returns rate for year 3 to year 6 = 10 [tex]\%[/tex]
Required returns level after years 6= 8 [tex]\%[/tex]
Formula:
[tex]\text{Value of stock}= \frac{ \text{Last Dividend} \times (1+ Growth \ rate)}{\text{(Required rate of return - Growth Rate)}}[/tex]
Divididend payment for year O to year 6 is calculated below:
Year [tex]0 \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 5 \ \ \ \ \ \ \ \ \ \ \ 6[/tex]
Rate of return needed 12[tex]\%[/tex] 12[tex]\%[/tex] 12[tex]\%[/tex] 10[tex]\%[/tex] 10[tex]\%[/tex] 10[tex]\%[/tex]
Collection of dividend[tex]\$ \ 3.85 \ \ \ \ \ \ 4.00 \ \ \ \ \ \ 4.16 \ \ \ \ \ \ 4.33 \ \ \ \ \ \ 4.50 \ \ \ \ \ \ 4.68 \ \ \ \ \ \ 4.87[/tex] Benefit of terminal 126.6584
Dividend purchase price 3.58 3.32 3.08 3.08 2.91 2.75 Terminal value at year-end 3 95.16
Present dividend value 67.73
Value of Stock $86.44
Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, the stock is selling for $39 per share, what are your put options worth? What's your net profit?
Answer:
3000
1500
Explanation:
For each of the answers in this question I have added the formulas to solve them in the attachment below
1.
(45-39)*5*100
= 3000
2.
(45-39)-3 x5 x100
= $1500
Sheridan Corp. paid a dividend of $2.30 yesterday. The company's dividend is expected to grow at a steady rate of 5 percent for the foreseeable future. If investors in stocks of companies like Sheridan require a rate of return of 15 percent, what should be the market price of Sheridan stock? (Round dividend to 3 decimal places, e.g. 3.756 and round final answer to 2 decimal places, e.g. 15.25.) Market price $ _________
Answer:
$24.15
Explanation:
The formula for determining is the present value of a cash flow in perpetuity provided below:
share price=last dividend*(1+terminal dividend growth rate)/(required rate of return-terminal dividend growth rate)
last dividend=$2.30
terminal dividend growth rate=5%
required rate of return=15%
share price=$2.30*(1+5%)/(15%-5%)
share price=$2.415 /10%
share price=$24.15
What is the best strategy to avoid paying interest on your credit cards?
A. Pay the minimum balance each month.
B. Have credit cards from two different banks.
C. Make payments online.
D. Pay the full balance each month.
Match the factor with how it contributes to a product's launch.
1. budget
enhances consumers'
understanding
2. marketing
gauges potential channels
3. market research
executes strategy for sales
A company carefully defines its target market. Now the company will be able to focus on people with a preexisting need or interest in what it offers. Therefore resulting in higher sales and less wasted time and effort on potential customers that are not interested in what the company has to offer. This is an example of:_____.a. why a company would seek to define its target market a a component in creating the company's marketing strategy.
b. why the marketing strategy defines the target market for a company.
c. why it is important for companies to develop their value proposition.
d. why carefully choosing customers is important when engaging in product development.
Answer: a. Why a company would seek to define its target market as a component in creating the company's marketing strategy
Explanation:
A target market for a particular business simply means the group of customers that the business channels its marketing efforts towards. For example, a business that produces mens clothes will channel its efforts towards men rather than women, therefore its target market will be men.
Based on the scenario in the question, this is an example of why a company would seek to define its target market a a component in creating the company's marketing strategy. Identifying the target market will help in minimizing waste fo resources and bring about increase in productivity.
refers to everything your customer see when interacting thing with your business.
Answer:
feedback on customer service
A furniture factory produced 1600 standard chairs in eight days. If the factory employed five workers, what was the labor productivity, in chairs per worker per day? A. 40 B. 100 C. 5O D.20 E. 80
Answer:
A. 40
Explanation:
Calculation for what was the labor productivity, in chairs per worker per day
Using this formula
Labor productivity per day =Company Per day output/ Number of labor
Let plug in the formula
Labor productivity per day= 1600/8 days×5 workers
Labor productivity per day=1,600/40
Labor productivity per day= 40
Therefore the Labor productivity per day will be 40
When GaGa began adding novelty bars in new flavors, what was the effect on the width and depth of its product mix?
Answer:
It increased the depth of their product mix.
The depth of the product mix is basically how many different types of variations of the same product are offered, e.g. Coke, Diet Coke, Coke Zero, etc. Increasing product depth involves new flavors, different package sizes or other specific characteristics regarding the product.
Product width refers to the different types of products offered by the company, e.g. Toyota offers sedans, trucks, SUVs, minivans. In this case, product width is not affected.
Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $3.85, what is the current share price?
Answer:
P0 = $92.57889 rounded off to $92.58
Explanation:
Using the two stage dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,
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,
D0 is the dividend just paid r is the required rate of return g1 is the initial growth rateg2 is the constant growth rate in dividendsP0 = 3.85 * (1+0.24) / (1+0.12) + 3.85 * (1+0.24)^2 / (1+0.12)^2 +
3.85 * (1+0.24)^3 / (1+0.12)^3 +
[(3.85 * (1+0.24)^3 * (1+0.05) / (12 - 0.05)) / (1+0.12)^3]
P0 = $92.57889 rounded off to $92.58
Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.
Answer: See explanation
Explanation:
Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:
= $15.40 × 100/(100 + 8)
= $15.40 × 100/108
= $1540/108
= $14.26
Sales tax will be:
= $15.40 × 8%
= $15.40 × 8/100
= $15.40 × 0.08
= $1.23
20 points pls help
Individuals you list on your job application who are willing to be contacted by your potential employer regarding your character and work ethic are referred to as _____.
acquaintances
character witnesses
references
employers
Answer:
References
Explanation:
These are people you will want to contact before your interview to let them know they might be contacted by the business today. As well as people you send thank you notes to or thank you "texts" nowadays
Partner A earns $59,000 from a partnership. Partner B earns $48,000 but withdraws only $40,000. How much must Partner B report in his income tax return as income?
Answer: $48,000
Explanation:
The entire amount earned by Partner B is what is reported not just the amount they decide to withdraw so Partner B will record the entire $48,000 that they earned from the partnership.
Personal income taxes are made on gross figures not net which is why the full amount is recorded.
Dragnet inc. sold Treasury bond futures contracts when the quoted price was 96-25. When this position was closed out, the quoted price was 97-16. Determine the profit or loss per contract, ignoring transaction costs.
Answer:
$-9,100
Explanation:
Calculation to Determine the profit or loss per contract
As given:
Selling Price =$ 962,500
Purchase Price =$ 971,600
Using this formula
Gain / Loss = Selling Price - Purchase Price
Let plug in the formula
Gain / Loss= $962,500 - $971,600
Gain / Loss = $-9,100
Therefore the loss per contract will be $-9,100
The Intramural Sports Club reports sales revenue of $892,000. Inventory at both the beginning and end of the year totals $160,000. The inventory turnover ratio for the year is 4.6.
What amount of gross profit does the company report in its income statement?
Answer:
$524,000
Explanation:
Gross profit = revenue - costs of goods sold
For the Intramural Sports Club, revenue = $892,000.
Finding the cost of goods sold COGS
Inventory turnover = COGS/ average inventory
inventory turnover=4.6
Average inventory = beginning plus closing inventory /2
in this case, average inventory =$160,000/2
=$80,000
Therefor, 4.6 = COGS/ $80,000
COGS = $80,000 x 4.6
COGS =$368,000
Gross profits= $892,000- $368,000
Gross profit =$524,000
The profit a company makes after deducting all costs associated with creating and selling its products or services is known as gross profit.
Gross Profit=Sales Revenue-Cost of Goods Sold
Cost of Goods sold can be expressed as follows:
COGS = Beginning Inventory + Purchases – Ending Inventory
They didn’t tell you what your purchases were, however they stated the inventory turned over 4.6 times.
However, Beginning and Ending inventory are the same, so $ 160,000 times 4.6 would be how much inventory was purchased during the year.
=160,000 x 4.6 = 736,000
=892,000 – 736,000 = 156,000
Hence, Gross Profit=$156,000
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For a given aggregate demand curve, the specificed rate of spending growth is the growth rate of money:___________.(a) demand plus the growth in velocity, (b) supply minus the rate of growth in velocity, (c) demand minus the rate of growth in velocity, (d) supply plus the growth in velocity.
Answer:
(d) supply plus the growth in velocity
Explanation:
As we know that
The spending growth rate is
= Money supply growth rate + velocity growth
Here the spending growth rate is the rate when there is a rise of the amount i.e. incurred
The Money supply growth rate is the rate when there is a rise in the money i.e. pumped in the market
And, the velocity of the growth is the rate where the money in the system varies hands
Therefore the correct option is d.
Riverside Clippers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decision about whether to produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan.Data concerning the decision are:Expected annual sales of tools (in units) 800,000Average selling price of tools $12Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) 175Current exchange rate 35 NTD = 1$Variable manufacturing costs $4.75 per unitIncremental annual fixed manufacturing costs associated with the new product line $400,000Variable selling and distribution costs $1 per unitAnnual fixed selling and distribution costs $220,000Selling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported1) Should Riverside Clippers Corp manufacture the 800,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain.2) Riverside Clippers Corp believes that the US dollar may weaken in the coming months against the New Taiwanese Dollar and does not want to face any currency risk. Assume that Riverside Clippers Corp can enter into a forward contract today to purchase 175 NTD at $5.35.Should Riverside Clippers Corp manufacture the 800,000 garden tools in the Maryland facility or purchase them from the Taiwan supplier? Explain.4) What are some of the qualitative factors that Riverside Clippers Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan?
Answer:
Riverside Clippers Corp
Make or Buy Decision:
1) Riverside Clippers Corp should purchase them from the supplier in Taiwan. It should not manufacture the 800,000 garden tools in the Maryland facility. It costs $0.25 per unit more to manufacture the tools in-house, or a total of $200,000 ($0.25 * 800,000). However, this savings in costs should be compared to the freight and other logistics costs that will be incurred to get the tools into the US location.
2. Assuming that Riverside Clippers Corp can enter into a forward contract today to purchase NTD 175 at $5.35, it should manufacture the 800,000 garden tools in the Maryland facility instead of purchasing them from the Taiwan supplier. It is cheaper to manufacture in-house than to outsource at any price above $5.25.
3. Apart from costs, which is a quantitative factor, some qualitative factors that Riverside Clippers Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan are:
a) Exchange Rate Risks, caused by the weakening of one currency against the other.
b) Are the Taiwan company the right outsourcing company? Will they protect Riverside's intellectual property?
c) Will the outsourcing bring in some advantages to the company by enabling it, for example, to focus its in-house talents on strategy and innovation?
d) Does the outsourcing company in Taiwan have stability with regard to employees turnover?
e) Experience of the outsourcing company is also relevant.
f) When the initial decision above was made to outsource, the freight-in was not taken into consideration. Location costs may outstrip the cost-savings.
g) Scalability enables Riverside to get things done quickly. Will outsourcing enable scalability to be achieved?
Explanation:
a) Data and Calculations:
Expected annual sales of tools = 800,000 units
Average selling price of tools = $12
Price by Taiwanese company = NTD 175 (New Taiwanese Dollars)
Current exchange rate = NTD 35 = $1
Price by Taiwanese company in US dollars = $5 (175/35)
In-house manufacturing costs:
Variable manufacturing costs = $4.75 per unit
Incremental annual fixed manufacturing costs = $400,000
Variable selling and distribution costs = $1 per unit
Annual fixed selling and distribution costs = $220,000
Selling and distribution costs same whether manufactured or imported
Relevant costs:
a) In-house manufacturing:
Variable manufacturing costs = $4.75
Incremental annual fixed costs = 0.50 ($400,000/800,000)
Total relevant in-house costs = $5.25
b) Outsourced:
Price by Taiwanese company = $5.00
Beckham Corporation has semiannual bonds outstanding with 13 years to maturity and the bonds are currently priced at $746.16. If the bonds have a coupon rate of 8.5%, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%?a. 6.250%.b. 12.890%.c. 12.500%.d. 8.125%.
Answer:
d. 8.125%.
Explanation:
The computation of the after tax cost of debt is shown below:
Given that
NPER = 13 × 2 = 26
PMT = $1,000 × 8.5% ÷ 2 = $42.50
Assume future value would be $1,000
Present value is $746.16
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the rate is
= 6.25% × 2
= 12.50%
Now the after tax cost of debt is
= 12.50% × (1 - 0.35)
= 8.125%
Hence, the correct option is d. 8.125%
What is one negative element about automated call answering service
systems?
A. They require a lot of time to operate them.
B. They are not cost efficient for companies.
C. They are impersonal, which can result in dissatisfied customers.
D. The caller can never accomplish his purpose when having to work
with one.
SUBMIT
Answer:
C. They are impersonal, which can result in dissatisfied customers.
Automated call service systems can help you, but if you have a more in depth question, it can't. The automated voice is impersonal, they don't show any emotional qualities, so they can't say, "sorry that happened to you," or, "sorry for the wait," (etc).
One negative element about automated call answering service systems is that they are impersonal, which can result in dissatisfied customers.
Thus, the correct option is C.
What are automated calls?A pre-recorded voice message is effectively delivered to the customer through an automated phone call. You can record a message, schedule a call, and send it whenever you like to as many recipients as you like.
An electrical device or piece of software that automatically calls phone numbers is known as an automatic dialer (also spelled auto dialer, auto-dialer, and auto dialer). The auto dialer either plays a recorded message or connects the call to a live person after the phone has been answered.
Automated voice calls are phone calls that merely repeat an already prerecorded message to any number of clients at once. Their fondness for them is primarily due to the built-in cloud capabilities.
Computer systems, network devices, or other machinery can operate automatically with the help of a collection of software and hardware components known as automated system operations (ASO).
ASOs make it possible for computer systems to function without a human operator present at the location where the system is deployed.
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If Rajiv's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price from $125,000 to $75,000 would result in the same change in the production quantity and, thus, total revenue. a) True b) False
Answer:
b) False
Explanation:
The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own. This will in turn drive sales and the production quantity to increase marginally in the short-run. However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.
Select the correct answer.
Informatics includes all support staff at a hospital.
A. True
B. False
The product cost concept includes the selling and administrative expenses in the cost amount to which the markup is added to determine product price. 1) True 2) False
Answer:
The product cost concept includes the selling and administrative expenses in the cost amount to which the markup is added to determine product price.
2) False
Explanation:
The product cost is made up of the following costs: direct labor, direct materials, consumable production supplies, and factory overhead. It does not include selling and administrative expenses. The total cost is then marked up to determine the product price at which it can be sold to customers. The markup will then cover the other expenses incurred in running the business and the expected profit per unit.
Your uncle in announces at a family gathering that he is thinking of becoming a day trader. What might you ask him to help him assess the wisdom of that choice?
Answer:
I’d ask him what are the stocks he is interested in selling/investing in. And where he would get all these stocks due to the fact that day traders sell everyday. Causing me to question if he’s buying stocks in surplus then selling them for a higher price or perhaps he has stocks of his own he can make a surplus of.
Explanation: Day traders execute many trades throughout the day to capitalize on intraday market price action. Their goal is to profit off of short term price movements.
Zheng has her house built on the border of a public watercourse in a state that follows riparian rights theory. It can be said that she:_________ a. is entitled to have the water body maintained in its natural state by other owners. b. is entitled to use the water for any purpose she may require. c. is not entitled to use any water without obtaining an approval from a court of law. d. is entitled to use only as much water as was used by the previous owner of the land.
Answer:
a. is entitled to have the water body maintained in its natural state by other owners.
Explanation:
The Riparian law is usually applied the eastern states of the United States to determine who is legally allowed to use water.
Riparian law states that the owner of a property adjacent to a body of water has the right to use it.
The concept of natural flow states that each Riparian land owner can use water for domestic use and no more. If a owner uses it for other purposes, other Riparian owners can take legal action against them.
Each riparian land owner is supposed to use what they need for domestic purpose so that natural flow is maintained for other riparian users.
In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover?a. February 2017-January 2018 b. March 2017-February 2018 c. December 2017-November 2018
Answer:
I believe that your question is missing a couple of options. I searched for similar questions and they all included the one option I am looking for (see attached image):
If the budget is continuously updated, checked and revised every quarter, and the company's tax year ends December 31, then the next first quarter is going to be January - March. This means that at the end of March, the budget will be revised and updated, and these changes will apply to the following year which stars on April 2017 and ends on March 2018.
The correct option would be:
April 2017 to march 2018.In order for option A to be correct, the company's tax year should end on October. For option B to be correct, the tax year should end on November. Finally, for C to be correct, the tax yer should end on August.
Which of the following is not an example of a multichannel retailer?
Answer:A
thats the one
Explanation:
McDonals is the example of multichannel retailer as the company is providing burgers and fries to its different outlets and in diffrent food ordering sites in many countries.
What is multichannel retailer?The technique of selling similar products over multiple channels and platforms is known as multichannel commerce.
The platforms can be both online and offline, with different channels such as brick and mortar stores, online stores, mobile stores, and mobile app stores.
Thus, McDonals is the example of multichannel retailer.
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A rental car company bought a new fleet of midsize cars and sold off its old midsize cars because they had too many miles on them. Which type of project would this be considered?
Answer:
The options are:
A replacement projectAn expansion projectThe correct answer would be:
A replacement project
Explanation:
In this specific case, the company is purchasing new assets in order to replace existing assets whose useful life is over. It is similar to buying a new computer system because the old one is obsolete and doesn't work anymore.
An expansion project would be to buy new cars in order to open new branches.
Why are single stock so dangerous as investments? Can you provide current market examples that have the potential to destroy portfolios based on single stocks? (name the stock)
Why should you be debt free before you begin long-term investing?
If you could create the perfect mutual fund, what companies would you put in it?
Answer:
There are two rules to investing. Rule number one, don’t lose money. Rule number two, see rule number one.” Individual stocks are far riskier than a well-diversified basket of stocks. According to Cambridge Associates, during the 10 year period ended June 30, 2013, 55 stocks in the S&P 500 lost at least half of their market value.
Explanation:
Ryder Supplies has its stock currently selling at $63.25. The company is expected to grow at a constant rate of 7 percent. If the appropriate discount rate is 17 percent, what is the expected dividend, a year from now?a) 4.43 b) 3.25 c) 10.75 d) 6.33
Answer:
d) 6.33
Explanation:
The computation of the expected dividend a year from now is shown below:
As we know that
Price of the stock = Expected dividend ÷ (Required rate of return - growth rate)
Expected dividend = Price of the stock × (Required rate of return - growth rate)
= $63.25 × (0.17 – 0.07)
= $6.325
hence, the correct option is d. $6.33
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Draco Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total fixed costs of $140,000. What sales volume is necessary to earn a net income after tax of $36,000, assuming a tax rate of 25%?
a. 17,500
b. 21,500
c. 23,500
d. 32,000
e. None of the above
Answer:
c. 23,500
Explanation:
The formula for determining target sales volume is shown below:
target sales volume=fixed costs+ target net income before tax/contribution margin per unit
fixed costs=$140,000
target net income before tax=$36,000/(1-25%)=$48000
contribution margin per unit=selling price-variable cost=$25-$17=$8
target sales volume=($140,000+$48000 )/$8
target sales volume=$188,000/$8
target sales volume=23500
1. What characteristics of sales promotions account for the high levels of expenditures that have been allocated to them in recent years?2. What role does sales promotion play in the trade channel and in business markets?
3. Why are sales promotions considered "risky" as a tool for integrated marketing communication (IMC)?
Answer:
1. Marketing a product with making an advertisement with a high paid cast requires a high level of expenditure. This type of sales promotion is considered an effective but expensive.
2. Sales promotion plays a vital role in the trade channel and also in business markets as by promoting a product the customer and consumer comes to know about the product and its features by which it can differentiate it with other similar products and if the promotion is effective the consumer demand will increase and thus both the consumers and customers will buy the product.
3. Integrated Marketing Communication (IMC) is considered a risky tool for sales promotion because in this method an organisation coordinates with many channels to spread their message which is risky because according to a survey almost 70% of the messages lost their initial meaning while reaching the third channel.
Explanation:
1. Marketing a product with making an advertisement with a high paid cast requires a high level of expenditure. This type of sales promotion is considered an effective but expensive.
2. Sales promotion plays a vital role in the trade channel and also in business markets as by promoting a product the customer and consumer comes to know about the product and its features by which it can differentiate it with other similar products and if the promotion is effective the consumer demand will increase and thus both the consumers and customers will buy the product.
3. Integrated Marketing Communication (IMC) is considered a risky tool for sales promotion because in this method an organisation coordinates with many channels to spread their message which is risky because according to a survey almost 70% of the messages lost their initial meaning while reaching the third channel.
