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3 years ago

What are the trade-offs in a retailer's deciding how much to emphasize private brands rather than manufacturer's brands?

1 answer:

4 0

I believe it all eventually came down to the segment of the consumers that they want to target. Private brands tend to had higher cost of production which will increase the end price for the customers. Since manufacturing company could mass produce, the cost would tend to be lower and reduce the end price for the customers.

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PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value

solong [7]

Answer:

$150.15

$92.31

Explanation:

Target stock price in year 5 = Earnings per share in year 5 x benchmark PE ratio

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

$2.86 / 0.4 = $7.15

$7.15 x 21 = $150.15

b. the stock price today can be found by finding the present value of the dividends

Present value can be found using a financial calculator

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

Stock price in year 5 = $150.15

i = 12%

Stock price (present value) = $92.31

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

6 0

3 years ago

You have received a research report done by a consultant for your firm, a life insurance company. The study is a survey of moral

Semmy [17]

Answer:

The research report must have the following attributes:

Easy to read and prepared in very simple language
A good report must outlay all arguments and results, facts, and arguments in a way that aligns properly with the objective of the report
the report must be prepared on time
It must be straightforward. The presentation must be very well articulated, properly spaced, aligned using very clear font types.

Cheers

5 0

3 years ago

Which of the following is a business that might need personal liability protection for its owner?

scoray [572]

Answer:

B: Doctors office

Explanation:

7 0

3 years ago

Read 2 more answers

After the issuance of its year 1 financial statements, Serenity Inc. discovered a computational error of $150,000 in the calcula

Vladimir79 [104]

Answer: C. $150,000 credit

Explanation:

In the financial statements for year 2, it should be noted that the year 1 retained earnings balance, should be adjusted by $150,000 credit.

The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.

Therefore, the correct option is C.

4 0

3 years ago

The manager of a manufacturing company knows that they will need a new machine in one of their factories. The new machine will c

KonstantinChe [14]

Answer:

The monthly repayment is $304.33

Explanation:

The actual cost of the machine is $12,500,the amount to be paid monthly over 3 years is $12500-(15%*$12,500)=$10625

$10,625 is to be repaid over three years on monthly basis

We can use pmt formula in excel

=pmt(rate,nper,pv.fv)

rate is 2% per year to be divided by 12 months in order to arrive at monthly

2%/12=0.001666667

nper is 3 multiplied by 12 as there are twelve repayments in a year which is 36

PV is the present value of the loan which is $10,625

FV is the future which is zero

=pmt(0.001666667 ,36,-10,625,0)

=$304.33

6 0

3 years ago