When one wants to find out the acid test ratio, the formula is:
- (Cash + Short term investments + Current receivables) / Current liabilities
<h3>What is the acid-test ratio?</h3>
It shows how well a company can pay off its current liabilities using only its most liquid short term assets.
It is calculated by deducting stock from the current assets and then dividing that figure by the current liabilities. Or, it can be calculated as:
= (Cash + Short term investments + Current receivables) / Current liabilities
Find out more on the acid test ratio at brainly.com/question/18651370.
Answer: 8.36%
Explanation:
The growth rate being thrown in there was in an effort to confuse you into using the Dividend Discount Model.
This is a Preferred Stock however and is calculated differently as such,
Net Price = Dividends / rate
Making rate the subject we have,
r = Dividends / Net Price
So plugging in the figures we have,
r = 3/ 35.9
r = 0.08356545961
r = 8.36%
The market required rate of return on your firm's preferred stock is 8.36%.
Answer:
Break even units of sales is 374 units.
Explanation:
The break even point in units is the number of units that the firm needs to sold to cover its total costs and break even. It is a point where total revenue is equal to total cost and there is no profit and no loss. The break even point in units is calculated using the following formula,
Break even in unit = Fixed costs / Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = 45 - 11 = $34
Break even in units = 12700 / 34 = 373.529 units rounded off to 374 units
Answer:
The Food and Drug Administration issues a recall for the meat, and the seller notifies its customers.
Explanation:
When there is a serious or potentially serious risk to consumers, the FDA works with sellers and distributors to recall products (remove them from store shelves) and notify customers through press releases and other communications.