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Jobisdone [24]
2 years ago
9

Domergue Corp. currently has an EPS of $3.76, and the benchmark PE for the company is 21. Earnings are expected to grow at 5.1 p

ercent per year. a. What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assuming the company pays no dividends, what is the implied return on the company’s stock over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
morpeh [17]2 years ago
5 0

Answer:

a. $78.96

b. $82.99

c. 5.10%

Explanation:

The computation is shown below:

a. Estimated stock price would be

= EPS  × Benchmark P/E Ratio

= $3.76 × 21

= $78.96

b. Target stock price would be

= EPS(1 + growth rate) ×Benchmark P/E Ratio

= $3.76(1 + 0.051) × 21 times

= $3.95 × 21 times

= $82.99

c. Implied return on the company’s stock

= {(Target stock price – estimated stock price) ÷ estimated stock price} x 100

= {($82.99 – 78.96) ÷ 78.96}   × 100

= {$4.03 ÷78.96} × 100

= 5.10%

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The demand for yak butter is given by 150 – 3pd and the supply is 3ps – 30, where Pa is the price paid by demanders and ps is th
andreev551 [17]

Answer:

1) Attached

2) 150-3p = 3p-30

3) P=30, Q=60

4) 150-3p = 3p-90

5) P=40 and Q=30

6) Ps=Pd+10

7) P=35, Q=45

8) P=45, Q=45

Explanation:

We can write the equation for the quantity demanded as:

Q_d=150-3p_d

And the equation for the quantity supplied as:

Q_s=3p_s-30

1) Attached

2) The equilibrium price can be calculated by making the quantity supplied equal to quantity demanded:

Q_s=Q_d\\\\3p-30=150-3p\\\\6p=150+30=180\\\\p=180/6=30

3) The equilibrium price is P=30.

The equilibrium quantity can be calculated as:

Q_s=150-3*30=150-90=60

The equilibrium quantity is Q=60.

4) The supply now becomes:

Q'_s=3p_s-90

The equation for the new equilibrium price is:

Q_d=Q'_s\\\\150-3p=3p-90\\\\6p=150+90=240\\\\p=240/6=40

Qd=150-3*40=150-120=30

5) The new equilibrium is at p=40 and Q=30

6) They will receive

p_s=p_d+subsidy=p_d+10

7)  In this case, the quantity supplied becomes:

Q_s=3p_s-90=3(p+10)-90=3p+30-90=3p-60

The new price equilibrium becomes P=35:

Q_s=Q_d\\\\3p-60=150-3p\\\\6p=150+60\\\\p=210/6=35

The quantity for this equilibrium is Q=45:

Q_d=150-3*35=150-105=45

8) Now, the equations for demand and supply are:

Q_s=3p-90\\\\Q_d=150-3(p-10)=150-3p+30=180-3p

The equilibrium price and quantity becomes:

Q_d=Q_s\\\\180-3p=3p-90\\\\6p=180+90\\\\p=270/6=45\\\\\\Q_d=180-3*45=180-135=45

7 0
2 years ago
One of your duties as the capacity manager for XYZ Company is to determine the best operating level. One way to help determine c
yanalaym [24]

Answer:

Capacity utilization rate of team 1=4200/4700=0,89

Capacity utilization rate of team 2=3700/4700=0,78

Explanation:

To get the maximum capacity of utilization capacity manager must consider the routine safety and the level where average cost per unit, so we use 4700 widgets per day to get the rate of team 1 and 2.  

Capacity utilization rate of team 1=4200/4700=0,89

Capacity utilization rate of team 2=3700/4700=0,78

3 0
2 years ago
Someone who wants credentials in skilled training, but in less time than a four- year degree should consider...
Pavlova-9 [17]

Answer:

Career or technical education.

Explanation:

Someone who wants credentials in skilled training, but in less time than a four- year degree should consider Career or technical education.

A technical education course is solely based on providing skilled training which will help the student to learn the practicalities in a shorter period of time.

They are focused on a specific kind of skilled training which you can use in your career. Technical education is also known by the name of a diploma which can be completed in a period of 2 years or even in a period of months.

4 0
2 years ago
Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.
adell [148]
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.) 
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>

<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>

<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>

<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>

<span>Contribution margin 295,800 </span>

<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>

<span>Net operating Income 120600</span>
7 0
2 years ago
What recommendations would you give to Sundar Pichai, CEO of Google, to compete more effectively against Microsoft? To continue
olga55 [171]

Answer: Optimize more ways in how the search engine can reach people better and solve problems with little or no challenges

Explanation:

Google has to look for ways in how the search engines can reach a wider audience and how they can easily answer people's question without much referrals. Most people get tired when they come online to search for an answer to a question and they are being referred severally to other sites and they end up not getting the desired answer at the end f their search. Google should look for ways in designing their tool to provide answers immediately with little or no bulky referrals.

4 0
2 years ago
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