Answer:
Management
Explanation:
Better cash management ensures survival of any firm if well handled and managed.
A Cash Management Strategy includes the use of Banks, Saving & Loan Associations, Credit Unions, and other financial institutions provide a variety of financial services or the use of Account services provide customers with online banking offering deposits, investments, credit cards, loans, mortgages, rewards programs and others.
Effective Cash Management Rules involves: balancing your checkbook regularly and Pay your bills on time
And others.
Answer:
I would pay up to 81.52 dollars for the share that way I will get a 12% return at least
Explanation:
We need to calcualte the present value of the cash flow of each year using the formula for present value of a lump sum:
Dividends Present Value
1st year 3.00 2.678571429 *1
2nd year 4.25 3.38807398 *2
3rd year 106.00* 75.44870627 *3
<em>Value of the share at 12% discount rate 81.51535168</em>
*100 dollars from the sale plus 6 dollars of dividends
*1
Div: 3.00
time: 1
rate: 0.12
PV 2.678571429
*2
Dividends 4.25
time 2.00
rate 0.12000
PV 3.3881
*3
Maturity 106.00
time 3.00
rate 0.12000
PV 75.4487
d. tyler says his profit is $34,100, and greg says he lost $6,500.
Accounting profit is simply revenues minus explicit (direct) costs whereas economic profit factors in opportunity costs and explicit costs.
Question Completion:
On December 31, 2014, Renda's common stock sold for $35 per share. At that price, how much did investors say $1 of the company's net income was worth? Earnings per share = $1.50
Answer:
Renda Company
The value of $1 of the company's net income by investors was:
$23.33
Explanation:
a) Data and Calculations:
Market price of Renda's common stock = $35 per share
Earnings per share = $1.50
This means that investors' value on $1 = $35/$1.50 = $23.33
b) Investors in Renda's common stock place a value of $23.33 for each $1 of the company's net income. This is why they can afford to pay $35 per share in order to benefit from $1 of the company's earnings. This calculation is based on the price-earnings ratio, which relates the company's share price to the earnings per share.
