Answer:
Option (e) is correct.
Explanation:
Given that,
Beta = 0.88
Expected dividend growth rate = 4.00% per year
T-bond rate = 5.25% (The treasury bonds are always the risk free rate)
Average annual future return on the market = 14.75%
Required rate of return:
= Risk free rate + Beta × (Market rate - Risk free rate)
= 5.25 + 0.88 × (14.75 - 5.25)
= 5.25 + 0.88 × 9.5
= 5.25 + 8.36
= 13.61%
Answer: Participating preferred
Explanation:
Participating preferred is a stock which pays specific dividends rate to their customers and also receives additional dividends, this is made known Board of Directors and paid by the company, this meets up with the objectives a customers has for investing and having a stable income. It is so known as performance preferred and it gives the holder the benefit of collecting extra dividends.
Answer:
The answer is True.
Explanation:
The center of gravity method is a concept under <em>Operations Management</em> as it relates to facilities distribution such as warehouses or fulfillment centers.
Center of Gravity Strategy/Method is defined as a concept that seeks to calculate geographic coordinates for a potential single new facility that will minimize costs. Under this approach the main factors considered are:
- Cost of Shipping
- Markets
- Volume of goods shipped
Operations managers prefer to use this approach in siting the location of their facilities because:
- It minimizes cost.
- It is simple to compute
- It takes in to consideration existing facilities
How to use the Center of Gravity Method
Step 1:
- Place existing facility(ies) such warehouse, fulfillment center, and distribution center locations in a coordinate grid.
- situate the grid on an ordinary map.
- The distances between the facilities must be noted.
Step 2:
Then, using the equations below,
Fx= ∑ dix Vi/ ∑ Vi
Fy= ∑ diy Vi/ ∑ Vi
Proceed to calculate the X and Y coordinates using these equations where Fx is the X (horizontal axis) coordinate for the new facility, and
Fy is the Y (vertical axis) coordinate for the new facility, dix is the X coordinate of the current location, diy is the Y coordinate of the existing location, and Vi is the volume of goods moved to or from the <em>i</em>th location.
Step 3:
After you have obtained the X and Y coordinates place that location on the map.
This approach allows for point of departure – or, literally, a starting point of where (from the perspective of longitude and latitude) you options are for where to grow your fulfillment or logistics network.
Cheers!
Answer: 7.12%
Explanation:
Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time.
To calculate the Effective Annual Rate one can use the following formula,
Effective Rate of Interest = (1+r/m)^m - 1
where r is the rate and
M is the no of compounding periods per year which in this case would be 2 because the payments are semi annual
Plugging in figures would give us,
Effective Rate of Interest = (1+0.07/2)^2 - 1
=0.0712
= 7.12%
If you need any clarification do comment or react.
Answer:
a. The division’s basic earning power ratio is above the average of other firms in its industry.
Explanation:
All the rest of the option in the question results in less efficiency of the company's division. In order to achieve a better grade Option A is the only choice.
