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3 years ago

You’ve collected the following information from your favorite financial website.

Business

1 answer:

Nataliya [291]3 years ago

3 0

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
Re = cost of equity = ?
P₀ = current stock price = $62.91
g = dividend's growth rate = -11.5%

Re = (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

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________ is the practice wherein an organization gives another organization the right to use its brand name, technology, or prod

Sliva [168]

Answer: Licensing

Explanation:

A licensing is the term which is used to the refers to the official permission that should be taken from the other organization for manufacturing their products and the services.

The main purpose of the licensing is that the organization can easily run their business by accomplish the the licensing practices which include the qualification, training and the professional experience.

According to the given question, the licensing is one of the practices that one company gives permit or rights to the another company for using their technology and the brand name.

Therefore, Licensing is the correct answer.

6 0

4 years ago

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct lab

zaharov [31]

Answer:

$122000

Explanation:

Given:

Cost of materials used = $45,000

Direct labor costs = $48,000

Factory overhead = $39,000

Beginning work in progress = $18,000

Ending Work in Process = $28,000

Question asked:

What is the cost of goods manufactured ?

Solution:

Cost of goods manufactured = Direct Materials Used + Direct Labor Used + Manufacturing Overhead + Beginning Work in Process - Ending Work in Process

Cost of goods manufactured = $45,000 + $48,000 + $39,000 + $18,000 - $28,000

Cost of goods manufactured = $122000

Therefore, cost of goods manufactured of Gunner Manufacturing is $122000.

3 0

3 years ago

assume you take a first and second loan on a commercial property; both are interest-only loans with one financing 60% of the pur

Juliette [100K]

If you look at the information in the question, you'll notice that the return is less than the cost of borrowing (loan interest rate) (ATIRR). This indicates that there is negative leverage and that the property cannot utilise it.

Positive leverage would be created in the first year if the property was purchased with expected returns equivalent to leverage.

Financial leverage is the process of using borrowed money (debt) to buy assets in the expectation that the income from the new asset or capital gain would outweigh the cost of borrowing. The leverage is summed up in this idea. By using debt (loan money), or leverage, we mean to increase the profits on an investment or project.

Leverage allows investors to increase their market buying power.

Leverage is a tool used by businesses to finance their assets. Rather than issuing stock to raise money, businesses can use debt to finance operations in an effort to boost shareholder value.

The most popular financial leverage ratios to determine how hazardous a company's position is are debt-to-assets and debt-to-equity.

To know more about Leverage visit:

brainly.com/question/29032787

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6 0

1 year ago

Which is the most accurate definition of body language?

Masja [62]

Body Language is communicate by movement or position, particularly facial expressions, gestures and the relative positions of a speaker and listener.

6 0

3 years ago

Read 2 more answers

Assume the following information:Selling price per unit $200Contribution margin ratio 50%Total fixed costs $275,000How many unit

kkurt [141]

Answer:

Level of sales (dollars) to earn profit of $50,000

= Fixed cost + desired profit

Contribution margin ratio

= $275,000 + $50,000

0.5

= $650,000

Number of units to earn profit of $50,000

= Level of sales

Selling price

= $650,000

$200

= 3,250 units

The correct answer is A

Explanation:

First and foremost, the level of sales (dollars) to earn $50,000 profit is calculated, which is the ratio of fixed cost and desired profit to contribution margin ratio. Then, we will calculate the number of units to be sold in order to earn $50,000 profit by dividing the level of sales by selling price.

7 0

3 years ago