Answer:
A) 29%
Explanation:
W= (.14-.05)(.39^2)-(.21-.05)(.20)(.39)(.4)
(.14-.05)(.39^2)+(.21-.05)(.20^2) - (.14-.05+.21-.05)(.20)(.39)(.4)
B = 71% A =1-0.71= 29%
σ2rp = (.292)(.392) + (.712)(.202) + 2(.29)(.71)(.39)(.20).4
σ2rp = .045804
σrp = 21.4%
Subtract 1 on both sides. Once you subtract 1 you would get 2/5x=10. Then you would multiply by 5/2 on both sides so you get rid of the fraction. A fraction mulitplied by its reciprocal is always equal to 1 and 10 multiplied by 5/2 is 25. So x=25
Answer:
(a) $34.61; 11.54
(b) $32.81; 10.94
Explanation:
(a) Stock Price = D ÷ (Ke – G)
Where,
D is dividend next year,
Ke is required rate of return on equity
G is growth rate
Growth rate = ROE × plow-back ratio
= 0.12 × 0.40
= 0.048 or 4.8%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.6
= $1.8
Stock Price:
= $1.8 ÷ (0.10 - 0.048)
= $34.61
P/E Ratio = Stock Price ÷ EPS
= $34.61 ÷ $3
= 11.54
(b) New growth rate = 0.12 × 0.30
= 0.036 or 3.6%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.7
= $2.1
Stock Price = $2.1 ÷ (0.10 - 0.036)
= $32.81
P/E Ratio = Stock Price ÷ EPS
= $32.81 ÷ $3
= 10.94
Answer:
$90,000
Explanation:
The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:
Cost &
Net realizable value
Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.
Answer:
The answer is: A) Was approximately 7.77
Explanation:
A company's Accounts Receivable turnover rate refers to the number of times per year that a company collects its accounts receivable. It is calculated using the following formula:
turnover rate = 365 days / average time to collect accounts receivable
turnover rate = 365 days / 47 days = 7.77