Answer:
$196.91
Explanation:
The computation of the current value is shown below:
D1 = ($2.4 × 1.17) = 2.808
D2 = ($2.808 × 1.17) = 3.28536
D3 = (3.28536 × 1.17) = 3.8438712
D4 = (3.8438712 × 1.17) = 4.4973293
Now
Value after year 4 is
= (D4 × Growth rate) ÷ (Required return - Growth rate)
= (4.4973293 × 1.06) ÷ (0.079 - 0.06)
= 250.903635
Now the current value is
= Future dividend and value × Present value of discounting factor
=$2.808 ÷ 1.079 + 3.28536 ÷ 1.079^2 + 3.8438712 ÷ 1.079^3 + 4.4973293 ÷ 1.079^4 + 250.903635 ÷ 1.079^4
= $196.91
The current value of a share of Bell Weather Co.'s stock can be calculated using the Gordon Growth Model, which incorporates the dividend growth rate and the required rate of return. For the first four years, the annual dividend of $2.40 grows at 17 percent a year. From the fifth year onward, it would grow at a rate of 6% against a required rate of return of 7.90%.
Considering Bell Weather Co.'s dividend growth, we can calculate the present value of each future dividend and then sum those values to determine the current stock price. If the annual dividend of $2.40 is expected to grow by 17 percent a year for the next four years, and then drop to a growth rate of 6% per year, we can calculate the stock price based on the required rate of return of 7.90%. This is achieved by using the two-stage dividend discount model, also known as the Gordon Growth Model. This model takes into account the dividend growth rate and the required rate of return to find the stock price.
For example, the dividends for the first four years would be D1 = 2.40*(1+0.17) = $2.808, D2 = 2.808*(1+0.17) = $3.285, D3 = 3.285*(1+0.17) = $3.844, D4 = 3.844*(1+0.17) = $4.495.
The dividends from the fifth year onward would be growing at a consistent rate of 6%. The value of the stock would be the present value(sum) of these dividends, discounted back at the required return of 7.9%.
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Answer:
given statement is false
Explanation:
given data
average cost of transporting on train = $75
solution
when average cost of transporting as train then a passenger travel from Chicago to St. Louis its cost is $75
so it mean we can say that the overall price by travel by train to be charged from all the customers should be average cost = $75
and railroad allow any passenger to ride for less than $75 is false
so given statement is false
If viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, configuration control.
What is configuration control?
Process for regulating hardware, software, firmware, and documentation alterations to safeguard the information system from unauthorised alterations before, during, and after system deployment. In military and technology development environments, configuration control is frequently employed. By making sure that any changes are thoroughly tested before being incorporated into the finished product, it can lower the likelihood of failure or malfunction.
What does the configuration serve?
The process of configuration management involves keeping software, servers, and computer systems in a consistent, desirable condition. It's a method of ensuring that a system functions as expected as modifications are made to it over time.
To know more about configuration control, click here- brainly.com/question/29736870
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Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 976 $ 1,920
Accounts receivable, net 15,000 10,050
Inventory 10,000 8,440
Prepaid expenses 1,860 2,220
Total current assets 27,836 22,630
Property and equipment:
Land 6,600 6,600
Buildings and equipment, net 19,800 19,600
Total property and equipment 26,400 26,200
Total assets $ 54,236 $ 48,830
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 10,100 $ 8,600
Accrued liabilities 720 1,000
Notes payable, short term 360 360
Total current liabilities 11,180 9,960
Long-term liabilities:
Bonds payable 6,250 6,250
Total liabilities 17,430 16,210
Stockholders' equity:
Common stock 860 860
Additional paid-in capital 4,500 4,500
Total paid-in capital 5,360 5,360
Retained earnings 31,446 27,260
Total stockholders' equity 36,806 32,620
Total liabilities and stockholders' equity $ 54,236 $ 48,830
Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 85,000 $ 80,000
Cost of goods sold 55,000 51,000
Gross margin 30,000 29,000
Selling and administrative expenses:
Selling expenses 9,100 8,600
Administrative expenses 12,600 11,600
Total selling and administrative expenses 21,700 20,200
Net operating income 8,300 8,800
Interest expense 750 750
Net income before taxes 7,550 8,050
Income taxes 3,020 3,220
Net income 4,530 4,830
Dividends to common stockholders 344 645
Net income added to retained earnings 4,186 4,185
Beginning retained earnings 27,260 23,075
Ending retained earnings $ 31,446 $ 27,260
Required: Compute the following financial data for this year:
1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)
Answer:
A.
This year $30,000/$85,000 = 35.3%
Last Year $29,000/$80,000 = 36.3%
B.
This year $4,186/$85,000 = 4.9%
Last Year $4,185/$80,000 = 5.2%
C.
This year $4,186/$54,236 = 7.7%
Last Year $4,185/$48,830 = 8.6%
D.
This year $4,186/$36,806 = 11.4%
Last Year $4,185/$32,620 = 12.8%
Explanation:
A. Gross Margin % measures the profitability of a Business based on its direct input costs (that is having not considered its indirect costs which includes the selling , general and administrative costs)
It is derived as Gross Margin divided by Net sales x 100%
B. Net profit % = is a measure of profitability of a business in relation to its sales. All relevant costs (except dividend payable to common stock holders) would have been considered in arriving at the applied profit
It is derived as Net Income divided by Net sales x 100%
C. return on total Assets. This is a measure of a business profitability in relation to its investments in Assets. The higher the rate the better a firm is said to be in its conversion process
It is derived as Net income divided by Total Assets x 100%
D. Return on Equity is a measure of profitability in relation to common stock holders investment in shares in a business. The higher the rate, the better the adjudged performance of the business by the shareholders.
It is derived as Net income divided by total shareholders equity x 100%
Answer:
15.167%
Explanation:
For computing the WACC we need to do the following calculations which are shown below:
Cost of equity = Risk free rate + Beta × Market risk premium
= 3% + 2 × 9%
= 21%
After tax cost of debt = Cost of debt × (1-Tax Rate)
= 5% × (1 - 0.30)
= 3.50%
Now
WACC = Weight of debt × Cost of debt + Weight of equity × Cost of equity
= 5 ÷ 15 × 3.50 + 10 ÷ 15 × 21
= 1.167% + 14%
= 15.167%
B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
C.the income statement for Year 3 would show $5,000 of accrued salaries payable.
D.the income statement for Year 4 would show $5,000 of accrued salaries expense.
Answer:
B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
Explanation:
The adjusting entry to record the accrued salaries as at December 31, Year 3 of the Snack, Ince. are as follows:
Debit Credit
Accrued salaries expense $5,000
Accrued salaries payable $5,000
Based on the above discussion, the answer shall be B.the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
The balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
The correct answer is option B: the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable. Accrued salaries are salaries that have been earned by employees but not yet paid. When Snack, Inc. adjusts its records to recognize $5,000 of accrued salaries, it means that they are acknowledging the salaries that have been earned but not yet paid. On the balance sheet, accrued salaries payable is recorded as a liability, representing the amount that the company owes to its employees for the salaries they have earned but have not yet received. Therefore, the balance sheet at the beginning of Year 4 would show $5,000 of accrued salaries payable.
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