Answer:
$5.95
Explanation:
Given that,
Dividend paid in Year 7 = $2 per share
Growth rate of dividend = 2.2%
Required return = 16 percent
Share price is the present value of all future dividends.
Present Value of future dividends at year 6:
= 
= 
= 
= $14.49
Present value of dividends (Now):
= Present Value of future dividends at year 6 × (1 + Required return)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Therefore, the current share price is $5.95 if the required return is 16 percent.
Answer:
Net dollar sales projection for this year is $645,840.
Explanation:
Last year = 15,000 units
Price = $45
Projected:
Sales = 15000 units x ( 1 + 30%) = 15000 units x ( 1 + 0.30) = 15000 units x 1.30 = 19,500 units
Price = $45 x ( 1 - 20%) = $45 x ( 1 - 0.20) = $45 x 0.80 = $36
Total Sales Projection = 19,500 x $36 = $702,000
Returned Marchandise = $702,000 x 8% = $56,160
Net Sale = Total Sales - Returned Marchandize = $702,000 - $56,160
Net Sale = $645,840
The inventory system whereby the merchandise inventory account balance is merely a record of the most recent physical inventory count is called the periodic system. The periodic inventory system is a<span> method of accounting for merchandise inventory in which the cost of the inventory sold is determined only at the end of an accounting period.</span>
<span>The updates in this system are made on a </span>periodic<span> basis. </span>
Answer:
1.Since there is spare capacity in the consumer division, the acceptable transfer prices are variable cost per unit - market price per unit
i.e. $104-$150
The transfer price should be set in between the two. However, $150 is an appropriate price
2. Income will increase as follows:
Consumer Division = (115-104)*2880 = $31,680
Commercial Division = (150-115)*2880 = $100,800
Company = $132,480
3) check the attached file
4.Income will increase as follows:
Consumer Division = (126-104)*2880 = $63,360
Commercial Division = (150-126)*2880 = $69,120
Company = $132,480
Explanation:
check attached files for explanation well detailed.
Answer:
Jackson's target total cost of producing and selling 6 million cans of paint of $31,800,000 will enable it to reach stockholders' profit goals of $6 million.
The implication is that it should not allow its total costs (Production and other business expenses) to exceed $37,800,000.
This is because its sales revenue will be equal to $43,800,000 (6,000,000 * $7.30).
As such, Jackson can produce a can of paint for $5.30. It can also incur an average business expense of $1.00 per can to maintain and reach its $6 million profit target.
Explanation:
Profit is the difference obtained after deducting all costs from the revenue. There are some profit stages. The first is the gross profit, which considers the sales revenue and the cost of goods sold. The next profit stage is the operating profit, which subtracts the business running expenses from the gross profit. There are also profits before and after interest and taxes. The after tax profit is also called the net income or net profit. If it is negative, then it is called the net loss. It is from the net income that distributions are made to stockholders in the form of dividends while a part is retained in the business to increase its capital stock or stockholders' equity.
