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Alex777 [14]
1 year ago
15

Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 11.0% per year. If that

growth rate were maintained, how many years would it take for Thomson's EPS to triple?
Business
1 answer:
Semmy [17]1 year ago
5 0

Answer:

10.52 years

Explanation:

We can work out the number of years using this relationship

V =P× (1+r)^n

V= tribe valeu  = 3×3.5 = 10.5

r-growth rate -11%

n- number of years- ?

10.5 = 3.5× (1.11)^n

<em>dividing both sides by 1.11^n</em>

1.11^n = 10.5/3.5

<em>taking the log of both sides</em>

n log 1.11 = log 3

n = log 3/log 1.11

n =10.52

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Your answer would be D). $2,040.00

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Explanation:

To find the state income tax in this situation, we would need to be doing a lot of multiplying and dividing in order to get our answer.

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We would need to get x by itself, so we would divide by 28.4. But first, we would need to move the decimal place from 28.4 2 times to the left, so we would be dividing by .284

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D). $2,040 should be your FINAL answer.

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8 0
1 year ago
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1 year ago
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis
spayn [35]

Answer:

Investments in both divisions are performing equally well at the ROI of 14% each.

Explanation:

The financial data in the question are merged together and they are first sorted before the question is answered as follows:

                                               Consumer ($)            Commercial ($)

Sales revenue                            22,000                        37,000

Divisional income                         3,850                          3,885

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R&D                                               1,000                           1,000

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Commercial division ROI = $3,885 / $27,750 = 0.1400, or 14%

This shows that investments in both divisions are performing equally well at the ROI of 14% each.

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I think it’s higher the risk and the lower present value
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