Answer: The options are given below:
A) Dogs
B) Question marks
C) Stars
D) Cash cows
The correct option is D. Cash cows.
Explanation:
Products that are in slow-growing markets, but for which the company has a relatively large market share are considered Cash Cows, and it is expected of the company to milk the cash cow for as long as it can.
Cash cows, are typically leading products in markets that are mature.
Generally, a product that is designated as a Cash Cow will generate returns that are higher than the market's growth rate and sustain itself from a cash flow perspective.
The product should be taken advantage of for as long as possible. The value of cash cows can be calculated easily because their cash flow patterns are highly predictable.
In summary therefore, low-growth, high-share Cash Cows should be continuously milked for cash in order to reinvest in high-growth, high-share Stars that have a high future potential.
Answer:
E. The aftertax salvage value is $81,707.76.
Explanation:
The computation is shown below:
Accumulated depreciation is
= $287,000 × ( .2 + .32 + .192 + .1152)
= $237.406.40
Now the book value is
= Purchase value - accumulated depreciation
= $287,000 - $237,406.40
= $49,593.60
And, the selling value is $99,000
So after tax salvage value is
= Salvage value - (Salvage value - book value) × tax rate
= $99,000 - ($99,000 - $49,593.60) × 35%
= $81,707.76.
Answer:
$2.50
Explanation:
Given that,
Dividend Paying out under a policy = 45% of its income
Net income = $1,250,000
Number of shares outstanding = 225,000
Total dividends:
= 45% of its income
= $ 1,250,000 × 45%
= $562,500
Dividend per share:
= Total dividends ÷ Number of shares outstanding
= $562,500 ÷ 225,000
= $2.50
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Answer:
Annual coupon payment = $84
Coupon payment in percentage = 8.4%
Explanation:
Coupon payment amount is calculated using the PMT function in excel as follows:
=PMT(8.68%/2,20*2,-973.64,1000)
=42
Annual coupon payment =42*2 = $84
Coupon payment in percentage = 84/1000 = 8.4%
