Answer:
Option (C) is correct.
Explanation:
The dollar profit/loss and holding period return is computed as follows:
Dollar profit/loss will be:
= Stock sold one year later - Purchasing price of stock + Dividend paid
= $51.38 - $47.50 + $0.72
= $4.60
Holding period return will be:
= (Stock sold one year later - Purchasing cost of stock + Dividend paid
) ÷ Purchasing price of stock
= ($ 51.38 - $ 47.50 + 0.72) ÷ $47.50
= 9.68% Approximately
So, the correct answer is option C i.e. $4.60 ; 9.68%
Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
Answer:
The correct answer is $1,836,742.42.
Explanation:
According to the scenario, the given data are as follows:
EBIT = $373,000
Cost of equity = 13.2%
Tax rate = 35%
So, we can calculate the unlevered value of the firm by using following formula:
Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY
By putting the value, we get
Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%
= $373,000 × 0.65 ÷ 0.132
= $242,450 ÷ 0.132
= $1,836,742.42
Question attached
Answer and Explanation:
Ethical: it is ethical to reduce the emotional impact of a bad news by making use of an indirect approach which is less harsh and blunt unlike the direct approach. In situations such as communicating that a person has lost his job, it is important that the manager communicates using indirect approach
Direct: you are communicating facts to someone that has less time. Therefore the direct approach would be most appropriate as it goes straight to the point without delays
Intend to deceive:your boss is extremely busy therefore in this case it would be important to use the direct approach and move straight to the point from the beginning not hiding the bad news at the end of the mail
Answer: Please refer to Explanation
Explanation:
The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.
a. The costs deducted from the contribution margin to determine the responsibility margin. TRACEABLE FIXED COSTS.
b. Cost to produce plus a predetermined markup. COST-PLUS TRANSFER PRICE
c. Fixed costs that are readily controllable by the manager. NONE
d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. PERFORMANCE MARGIN.
e. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of various marketing strategies on the income of the business. CONTRIBUTION MARGIN.
f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. RESPONSIBILITY MARGIN.
g. The amount used in recording products or services supplied by one business unit to another. TRANSFER PRICE.
