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2 years ago

5 of 100

1 answer:

Ber [7]2 years ago

4 0

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

<h3>What do you mean by investment?</h3>

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

$\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\ \rm\,The\,Net \,Income = (95\% \times 3,600 \times 12) - 8,640\\\\ \rm\,The\,Net \,Income = \$32400$

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

$\rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000$

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

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Transportation stocks currently provide an expected rate of return of 15%. TTT, a large transportation company, will pay a year-

steposvetlana [31]

Answer:

The answer is: 10% constant growth rate

Explanation:

Since transportation stocks provide a 15% rate of return, TTT stock should also provide the same rate of return. We can expect to earn $9 (= $60 x 5%) every year from our investment in TTT stocks. We are receiving $3 as dividends, so the constant growth rate should equal the difference between the expected return minus the dividend payments:

$9 - $3 = $6; $6 represents 10% of the current stock price

We can also calculate this with the following formula:

expected return rate = (dividends / price) + growth rate

15% = (3 / 60) + g

15% = 5% + g

10% = g

6 0

3 years ago

Your boss has asked you to calculate the profitability ratios of Cold Goose Metal Works, Inc. and make comments on its second-ye

Alinara [238K]

Answer:

Gross Margin % 59.2% 53.8%

compares gross profit to sales revenue

Ne income Margin 32.0% 28.9%

compares net income to sales revenue

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,

Explanation:

Net Sales 3,810,000 3,000,000

Operating costs less depreciation/amortization 1,365,000 1,267,500

Depreciation and amortization 190,500 120,000

Total Operating Costs 1,555,500 1,387,500

Operating Income (or EBIT) 2,254,500 1,612,500

Less: Interest 225,450 169,313

Earnings before taxes (EBT) 2,029,050 1,443,187

Less: Taxes (40%) 821,620 577,275

Net Income 1,217,430 865,912

assets 11,277,600 7,050,000

Equity 3,750,000 3,750,000

Gross Margin % 59.2% 53.8%

compares gross profit to sales revenue

Ne income Margin 32.0% 28.9%

compares net income to sales revenue

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,

8 0

3 years ago

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

kompoz [17]

In a direct channel, the same member both produces and distributes a product or service to consumers.

<h3>What are Distribution Channels ?</h3>

Distribution channel (or supply chain) set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption - consists of all the institutions and marketing activities in the marketing process.

There are two types of distribution:

Direct-occurs when the suppliers and the tourist deal directly with each other. A direct channel allows the consumer to make purchases from the manufacturer

Indirect- occurs when part or all of the functions are handled by an intermediary. A indirect channel allows the consumer to buy the goods from a wholesaler or retailer.

Therefore, we can conclude that the correct option is B.

Your question is incomplete, but most probably your full question was:

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

a. tiered

b. direct

c. horizontal

d. vertical

e. exclusive

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7 0

2 years ago

Why are small businesses an important part of the American economy

sineoko [7]

Because small business actually do more and got more stuff going on

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3 years ago

What is the primary difference between a static budget and a flexible budget? the static budget contains only fixed costs, while

mrs_skeptik [129]

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2 years ago