Answer:
$26,294.75
Explanation:
Next years estimated total sales = $672,500
profit margin 4.6% of total estimated sales = 4.6% x $672,500 = $30,935
dividend payout ratio 15% of net income = $30,935 x 15% = $4,640.25
increase in retained earnings = net income - distributed dividends = $30,935 - $4,640.25 = $26,294.75
Answer:
Beta is 1.8
Explanation:
CAPM or capital asset pricing model is used to compute expected return on stock by establishing relationship between expected returns and systematic risk (also called beta).
Given:
Return on mutual fund = 14%
Risk free rate (Rf) = 5%
Market return (Rm) = 10%
Risk premium = Rm - Rf
= 10% - 5%
= 5%
CAPM formula:
Returns = Rf + β(Rp)
14% = 5% + β(5%)
β = 9 / 5
β = 1.8
Beta of mutual fund is 1.8
Answer:
C. Business writing uses less complex sentences, plain language, and a personable tone.
Explanation:
Characteristics of Good Business Writing. Accurate, so it leaves no room for error or misunderstanding. Clearly written, so that it is easy to understand the message and obvious what action the reader needs to take if any. Logical in structure, so the thought process of reasoning is easy to follow.
Answer:
b) $225,000
Explanation:
Common Stock ($0.50 x 450,000) $225,000
Discount on capital (($4-$0.5) x 450,000 $1,575,000
Retained Earning ( $100,000 - $40,000 ) <u>$60,000 </u>
Total Equity <u>$1,860,000</u>
Shares are recorded in the common stock account at the par value. Difference of $4 and $0.5 is recorded as add in capital excess of par common shares.
Answer:
2018: $78 million
2019: $468 million
2020: $234 million
Explanation:
Given that State Construction incurred costs as follows:
Year Cost
2018 $60 million
2019 $360 million
2020 $180 million
Total cost = $60 million + $360 million + $180 million = $600 million
Percentage to total cost ratio is:
For 2018 = $60 million / $600 million = 0.1,
For 2019 = $360 million / $600 million = 0.6,
For 2020 = $180 million / $600 million = 0.3.
Revenue = Percentage to total cost ratio × Contract price.
Contract price = $780 million
For 2018, Revenue = 0.1 × $780 million = $78 million
For 2019, Revenue = 0.6 × $780 million = $468 million
For 2020, Revenue = 0.3 × $780 million = $234 million