Answers
Answer:
$105.60
Explanation:
Given: Total dividend paid= $1100000.
Retained earning= $3300000.
Number of outstanding shares= 725000.
PE ratio= 17.4 times.
First finding earning per share.
Formula;
⇒
⇒
∴
Hence, earning per share (EPS)= $6.07.
Now, finding the appropriate stock price.
Price of stock=
⇒ Price of stock=
∴ Price of stock=
Hence, $105.60 would be the appropriate price of stock.
Related Questions
The problem-based ideation process begins with: a. the selection of one or more problem identification techniques. b. a study of the situation. c. the development of concept statements for further evaluation. d. the creation of a list of potential problems.
Foreign currencies are traded: A. only by banks in New York and London. B. over the counter. C. on both the NYSE and NASDAQ. D. on the Intercontinental Exchange.
Inventing a new soft drink - what would be the input - the conversion, and the output?
What is the total cost to move products between work centers A and D, and between work centers B and C combined
Answers
Answer:
The answer is $3,214,285.71
Explanation:
Price of each award is $45,000
And there are 5
Therefore, we have 5 x $45,000
=$225,000.
So, $225,000 is the future value.
Rate of return(r) in 7% and it is being assumed that it is forever.
So, so how much will be needed to fund his prizes(present value)?:
PV = FV/r
= $225,000/0.07
=$3,214,285.71
b. What is the effective rate on this loan?
c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?
Answers
Answer:
a. AIE will have to borrow $25,5102.04
b. The Effective Rate on this Loan is 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%
Explanation:
In order to calculate how much will AIE have to borrow we would have to use the following formula:
Amount to be borrowed = Cost of Truck / (1 - Compensating balance)
Amount to be borrowed = $250000 / (1 - 0.02)
a. Amount to be borrowed = $25,5102.04
In order to calculate the effective rate on this loan we calculate the following:
Effective Rate on this Loan = Interest / Amount received
Effective Rate on this Loan = 16581.63 / 250000
b. Effective Rate on this Loan = 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%
Final answer:
AIE will need to borrow approximately $255,102 at an effective interest rate of 6.63%. If the compensating balance requirement is removed, the effective rate will be 6.5%.
Explanation:
a. AIE will need to borrow the amount of the truck ($250,000) divided by 1 minus the compensating balance rate (2%). So, the company will have to borrow $250,000 / (1 - 0.02) = $255,102.
b. The effective interest rate is the discount interest divided by (1 - compensating balance), which is 6.5% / (1 - 0.02). The effective rate is thus approximately 6.63%.
c. If the compensating balance requirement is removed, the effective rate will be the same as the quoted rate, which is 6.5%%.
Learn more about Effective Interest Rate here:
#SPJ12
Answers
Answer:
c. decrease the money supply, increase taxes
Explanation:
Unemployment rate lower than the natural rate of unemployment (long run unemployment), creates inflationary gap in the economy. It requires policies to be contractionary in nature. Hence, money supply should decrease and tax should increase to correct the economy.
Answers
Answer:
The company's residual operating income (ROPI) for 2017 is $9,960. The right answer is D.
Explanation:
In order to calculate the company's residual operating income (ROPI) for 2017 we would have to use the following formula:
Company's Residual operating Income = NOPAT - [ WACC x NOA at beginning ]
Where, NOPAT = Net operating profit after tax for 2017 = $10,200, WACC = weighted average cost of capital = 6%
NOA at beginning = Net operating assets at beginning of the year (NOA of 2016 closing) = $18,800 - $14,800 = $4000
Therefore, Company's residual operating income = $10,200 - [ 6% x $4000 ] = $9,960
Answers
Answer:
A kickoff event's objective is to formally tell-all project stakeholders that the project has started. It introduces the team and assists them in understanding the project's requirements, history, and individual duties.
Explanation:
Year Mileage
1 3000
2 4000
3 3400
4 3800
5 3700
a) Forecast the mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecast in part (a), (Hint: You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5.
Answers
Answer:
Explanation:
A) using 2-year moving average :
Year 6 : (3800 + 3700) = 7500 / 2 = 3750
2) Mean absolute deviation based on the forecast above :
(3000 + 4000) = 7000/2 = 3500
(4000 + 3400) = 7400/2 = 3700
(3400 + 3800) = 7200/2 = 3600
3000
4000
3400 __3500__100
3800__3700__100
3700__3600__100
Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100
C) weight of 0.4 and 0.6
(0.4*3000 + 0.6*4000) = 3600
(0.4*4000 + 0.6*3400) = 3640
(0.4*3400 + 0.6*3800) = 3640
3000
4000
3400 __3600__200
3800__3640__160
3700__3640__60
(200 + 160 + 60) = 420 / 3 = 140