Answer: 5.54%
Explanation:
The margin of safety as a percent of sales will be calculated as:
= (Expected sales - Break even sales) / Expected sales
= ($352000 - $332500) / $352000
= $19500 / $352000
= 0.0554
= 5.54%
Answer:
Apple is the most innovative brand on the face of this earth. It has created iPhone, Mac-book, iPod, iTunes etc. Steve Jobs made it one of the most innovative brand in the world, when he was alive Apple was using disruptive innovation, they were creating totally new and innovative products which the world had never seen before. The way they changed the cell phone industry was simply phenomenal. They came up with iPhone when there was no concept of doing all of your computing works on the phone. But after Steve Jobs, company has almost lost its innovative charm, they could not come up with a disruptive innovation, they have just kept on changing the size, price and features of their iPhone which means they are involved in incremental innovation since after the death of Steve Jobs.
Answer:
a.
15%
b.
29.57
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,
P0 = D1 / r - g
Where
P0 = Price of stock
D1 = Future Dividend
r = Expected rate of return
g = Growth rate
a.
As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.
r = (D1 / P0) + g
As per given data
P0 = Price of stock = $34
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
Placing Values in the formula
r = ( $3.4 / 34 ) + 0.05
r = 0.15 = 15%
b.
As per given data
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
r = Expected rate of return = 16.5%
Placing Values in the formula
P0 = D1 / r - g
P0 = $3.40 / (16.5% - 5%)
P0 = $29.57
Answer:
In this case, when the subsidiary corporation is completely liquidated they have to pay the $100,000 in the subsidiary corporation's bonds.
Explanation:
The reason behind this answer is that in case the subsidiary corporations decide to liquidate all of their assets in any case. They still have a debt to the parent corporation of $100,000. So, after they liquidate they have to take some of the money to pay the debt issued of those bonds. No matter what, or the parent company can write a lawsuit against them for not doing so.
