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1 year ago

7

From each paycheck of your afterschool job, you’re able to save $45 toward the coat. You get paid twice a month. How many months

will it take you to save enough money to buy your North Face jacket.

1 answer:

RoseWind [281]1 year ago

6 0

Answer:4

Explanation:The total in 4 months would equal 360

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Engines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the follo

Nastasia [14]

Answer:

b.

Explanation:

In this scenario, the best theme for the analyst to look into would be a comparison of the commercial prospects of new aircraft models. Meaning a deep look into how well the new aircraft models will do in the commercial markets. This is because the stock prices of United Technologies and Rolls Royce ultimately depends on how well the company's products do when they get released. Therefore in order to decide which investment will return the highest ROI, it is best to compare their commercial prospects.

7 0

2 years ago

Juan purchased shares in ABC company for $5,000 three years ago. During these three years he received $600 in dividends. He ju

7nadin3 [17]

Answer:

B) –2%

Explanation:

The total return on an investment is calculated by,

Total Return = Capital gains ÷ Initial Investment x 100

First we will have to calculate capital gains of his investment,

He got 600 in dividends and 4,300 after selling the stock against the initial investment of $5,000.

So capital gains,

= 600 + 4,300 - 5,000

= -100

Total Return would be,

= -100 / 5,000 x 100

= -2% is the total return on his investment.

7 0

1 year ago

Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25

Kipish [7]

Answer:

Ans. The best estimate of the current intrinsic stock price is $36.51

Explanation:

Hi, first, we have to determine the cash flows for year 1 and 2 (when the stock grows at 25%) and then, the terminal value (using the constant growth rate of 6%). Then we have to bring to present value all the cash flows (terminal value included) and since the terminal value is an amount of money expressed in dollars of year 2, we have to bring it to present value, discounted at the WACC.

Normally, we need to use the rate of return of the equity but in this case this is not possible due to the lack of information. What we can do is to find the value of the company´s equity, which means that If we bring to present value tha cash flows of year 1 and 2 and the terminal value (using thte WACC as a discount rate) and add the short term invesments and substract the debt of the company, we can find the equity´s value and divide it by the outstanding shares, therefore obtaining a good aproximation to the intrinsic value of the stock. It all goes like this.

Note. Notice that 1.75 millions were the last cash flow so we need to find the cash flow for year 1 (CF1)

$(PV)CF1=\frac{1.75(1+0.25)}{(1+0.12)^{1} } =1.9531$

$(PV)CF2=\frac{1.75(1+0.25)^{2} }{(1+0.12)^{2} } =1.9463$

$(P.V)Terminal Value=\frac{1.75(1+0.25)^{2}(1+0.06) }{(0.12-0.06)} *(\frac{1}{(1+0.12)^{2} } )=38.51$

Where (PV) means present value.

Now, let´s do the following operation

$EquityValue=(PV)allCashFlows+ShortTermInvest-Debt$

$EquityValue=(1.9531+1.9463+38.51)+5-7=36.51$

Then, the equity´s value is $36.51 millions.

Now, the intrinsic value of the stock is the value of its equity divided by the number of outstanding shares.

$Intrinsic ValueStock=\frac{36.51}{1} =36.51$

So, the intrinsic value of Huxley Building Supplies' is $36.51

Best of luck.

7 0

2 years ago

Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgete

valentina_108 [34]

Answer:

As per Sales Budget the budgeted sales for the quarter four are $240,000. Below is the Sales budget.

Explanation:

Scora, Inc.

Sales Budget

Month Budgeted Unit Sales Budegted Unit Price Budgeted Total Sales

(A) (B) (A*B)

January 1200 $50 $60,000

February 2000 $50 $100,000

March 1600 $50 $80,000

Total for the quarter 4800 $50 $240,000

Hence, it is concluded that the budgeted sales for the January, February, March are $240,000.

5 0

2 years ago

The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: J

kirza4 [7]

Answer:

d- EVP has a short-term swing profit is $3000

Explanation:

Lets first understand what short-term swing profit is. Short-term swing profit is profit dependent upon a rule normally set by the securities & exchange commission which states that any profits made by company insiders through the purchase and sale of share/stocks within six months must be returned to the company. Company insiders are people/employees working within the entity mostly having more than 10% of company's shares or employees such as executives, directors and managers.

Now It's not clear from the question what the purchase price of the shares was when EVP sold them on January 12 2016, assuming these shares were purchased at $20, then the short-term swing profit would be $2000 as at January. Then EVP purchases 100 shares at $20 and sells them at $30 per share as at june. The additional short-term swing profit would be $1000 (i.e $30-$20=$10 per share).

Therefore the total short-term swing profit is $3000

4 0

2 years ago