Answer:
The current stock price should be at $60.15.
Explanation:
We have the dividend paid next year = 1.05 x 1.25 = $1.3125.
So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:
[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.
The present value of the dividend stream from year 8 to infinity ( growing perpetuity):
[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.
The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.
Thus, the answer is $60.15 per share.
Answer:
The answers are:
- Seattle´s sales were 34.6% larger than Portland´s
- Portland´s sales were 25.7% smaller than Seattle´s
- Portland´s sales were 74.3% of Seattle´s
Explanation:
To calculate answer 1 you must divide Seattle´s sales over Portland´s sales, then subtract 1, and finally multiply by 100.
= [ ($350,000/260,000) - 1 ] x 100 = 34.6%
To calculate answer 2 you must subtract the result form dividing Portland´s sales over Seattle´s sales from 1, and then multiply by 100.
= [ 1 - ($260,000/350,000) ] x 100 = 25.7%
To calculate answer 3 you must divide Portland´s sales over Seattle´s sales, and then multiply by 100.
= ($260,000/350,000) x 100 = 74.3%
Answer:
Gross profit margin requires revenue and gross profit of the company.
Current ratio = 1.386 x
Debt ratio = 0.123 x
Explanation:
Gross profit margin requires revenue and gross profit of the company which is provided in the question but it can be calculated using this formula ; Total revenue / gross profit . where Gross profit = Revenue - cost of goods sold
Current ratio is calculated using the formula ; current assets/ current liabilities lets assume the left column is for the most recent year then current ratio = 4612200/3325950 = 1.386x
Debt ratio is calculated using the formula ; total debts/total assets lets assume once more that the left column is the most recent year. note; total debts = long term + current notes payable = 454800 + 277550
therefore debt ratio = 732350 / 5957800 = 0.123x
attached is the income statement and balance sheet
Answer:
Future value is approximately $3,183,600 which is equal to $3,184,000.
Explanation:
Please see attachment
Answer: about two out of three small firms close within five years of their founding
Explanation:
According to a research that was done, it was found that out of three small firms, two close within the first five years they were established.
The reasons that were said to have caused this failure were funding challenges, faulty business model, inadequate management team and marketing initiatives that were unsuccessful.
Therefore, small business owners sgoutd try as much as possible to curtail risks that could possibly lead to the downfall of the business and also make sure the consumers are willing to purchase the product at the price given and that the product satisfies their needs.
