The value of current stock price is equal to $57.93
<u>Explanation:</u>
Given dividend = $20 per year
The calculation of current stock price is as follows:
The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250
Current stock price ( present value ) = 
After calculating, we get, 57.92801
Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).
Answer:
1. The major issue in the process is the lack of communication between different parties. The process being manually driven, might affect the customer satisfaction and lead to lost sales. The changes which need to be made is to make available the price information of different items at once, when the customer comes in to place an order. This can be made possible by asking the suppliers to send the updated sheet every morning before the day's business begins. It will be better if the entire uncatalogued as well as the price sheet is in electronic form, which can be updated immediately, as soon as the information is received from supplier in the morning. One better alternative is to connect the suppliers through an ERP so that their price might reflect at the company's end as soon as it is updated, It will reduce much hassle and mistakes that might creep in due to manual process.
2. a. The number of customers leaving per day / week to competitors due to inefficiency.
b. Total average delay in customer's order.
c. Customer satisfaction rating of the process as this will give the overall picture of customer's opinion about the company.
3. The information system might enable the suppliers to update their information each day which can then be used by the company reps to find out the right price of an item and enable him /her to provide the estimate immediately, leading to greater customer satisfaction, reducing the lost sales and eliminating the chances of a wrong quote being given.
Answer: i. €0.11
ii. €1.08
Explanation:
i. If we get 1 krona for every $0.13 then how many krona do we get per dollar?
= 1/0.13
= 7.69 Krona is to $1
If $1 is 7.69 Krona and $1 is also €0.85 then that means that,
€ 0.85 = 7.69 Krona
So for each Krona exchanged, we get how many Euro,
= 0.85/7.69
= 0.11
For each Krona exchanged, we get €0.11
ii. Following the example of the first question,
if £1 is to $1.12 then how many pounds are a dollar?
= 1/1.12
= 0.89
£0.89 is equal to a dollar.
if €1 is to $1.04 then how many euros are a dollar?
= 1/1.04
= 0.96
€0.96 are equal to a dollar.
This means that,
£0.89 = €0.96
So for every British Pound exchanged we get how many Euros?
= 0.96/0.89
= 1.078
= €1.08
For every British pound Exchanged, we get €1.08
Answer:
$254,010
Explanation:
Calculation for the total shareholders' equity at the end of 2021
Issue of stock (10,700 × $5.90) $63,130
Issue of stock (20,600 × $8.80) $181,280
Net income $95,000
Less Dividends( $53,000)
Less Treasury stock (3,000 × $10.80) ($32,400)
Total shareholders' equity $254,010
Therefore the total shareholders' equity at the end of 2021 is $254,010
