Answer:
The target stock price in one year is $264.75
Explanation:
We first calculate the ROE as below
ROE= Earnings / Book value of Equity
ROE= $948,600 / $6,200,000
ROE= 0.153
The payout ratio is:
b= Dividend / Net income
b = $493,272 / $948,600
b = 0.52
So the sustainable growth rate is:
g = ROE * (1-b)
g = 0.153 * (1-0.52)
g = 0.153 * 0.48
g = 0.07344
The earning in the first year are
EPS1 = $948,600 / 100,000 * (1 + 0.07344)
EPS1 = $9.486 * 1.07344
EPS1 = $10.1827
According to the benchmark PE ratio, the target stock price in one year is
Price = EPS1 * 26
Price = $10.1827 * 26
Price = $264.75
Answer:
A. Labour
D. Flour
Explanation:
A resource is something that supplies or adds value to a process. To this small business, resources will be all the things it uses to bake and deliver customers' cakes.
Labour and flour and useful in the baking of cakes. Without these two resources, the business will halt. Resources are, therefore, the inputs that make production possible.
Answer:
Legal requirement
Explanation:
When a firm or an organisation tries to enter an international or foreign market, there are few regulations which are compulsory to follow. Legal requirements are usually enforced by the local government to ensure transparency and the rule of law. It is mandatory to change a company's name into the local language before marketing. It is a legal requirement that is mandatory to follow.
Answer and Explanation:
core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.
For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:
create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first
For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered
the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.
How does a subsidy affect supply?
A subsidy by nature increases the purchasing power of the individual or class it is awarded to. It's like free money that can only be spent on certain things.
