Answer:
The price of the stock today=$560
Explanation:
We can use the expression for calculating the required rate of return to calculate the price of the stock today:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=13%=13/100=0.13
EDP=$2.80 per share
SP=unknown
DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125
replacing in the original expression;
0.13=(2.8/SP)+0.125
2.8/SP=0.13-0.125
2.8/SP=0.005
SP=2.8/0.005
SP=$560
The price of the stock today=$560
To calculate free cash flow, locate the income statement and balance sheet. Start with net income and add back charges for depreciation and amortization. Make an additional adjustment for changes in working capital, which is done by subtracting current liabilities from current assets. Then subtract capital expenditure (or spending on plants and equipment)
You have not suggested a list considering your question asks "..following businesses..."
Answer:
The answer is C.
Explanation:
Debt-to-equity ratio is an economical term that is used to express the balance between a companies total debt and its assets. It shows at what ratio the company's assets are funded by investors, stakeholders etc.
Since the industry average debt-to-equity ratio is 0.80 and the two companies have debt-to-equity ratios of 1.00 and 1.50 respectively, they are both over the average.
But with the higher ratio, Carter Co. has a higher financial risk compared to Sunny Co. and the industry average debt-to-equity ratio. So the correct answer is C.
I hope this answer helps.
Answer:
22.5
Explanation:
According to the given situation, the computation of the number of kanbans is shown below:-
Number of kanbans needed = [(Demand × Lead time) + (Demand × Safety stock)] ÷ Kanban size
= (750 × 0.5) + (750 × 0.25) ÷ 25
= 22.5
Therefore for computing the number of Kanbans we simply applied the above formula by considering all items
