Answer: $20.44
Explanation:
From the question given, we are informed that Best Ever Toys just paid its annual dividend of $1.78 per share and that the required return is 10.6% and the dividend growth rate is 1.23%, then the expected value of this stock five years from now will be:
= [$1.78 × (1 + 1.23%)^6] / (10.6% - 1.23%)
= (1.78 × 1.0123^6)/(10.6% - 1.23%)
= 20.44
The expected value of the stock is $20.44
Answer:
Direct materials and direct labor.
Explanation:
A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.
The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.
Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.
Answer:
Option D) The company’s depreciation expense declined.
Explanation:
It happens because when company´s depreciation decrease you have less cost of sales and an improvement in the Gross Margin and hence in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash because less depreciation means less total cash,
Total Cash it's defined by Net Income plus Depreciation, a less Depreciation means less Net Cash.
