Answer:
See explanations below
Explanation:
1. Overall contribution margin ratio of the company
= (Total contribution margin / Total sales ) × 100
= ( $113,400 / $162,000 ) × 100
= 70%
2 Company's overall break even point in dollar sales.
= Fixed expenses / Contribution margin ratio
= $82,530 / 70%
= $117,900
3. Contribution format income statement
Claim jumper
Sales $108,000/$162,000 = $0.67 × 100
= 67% × $117,900
= $78,993
Makeover
Sales $54,000/$162,000 = $0.33 × 100
= 33% × $117,900
= $38,907
Claim jumper
Variable expenses
= ($68,120 / $108,000) × $39,880
= $25,154
Makeover
Variable expenses
= ($45,280 / $54,000) × $8,720
= $7,312
• Variable expenses at the point of break even sales = (Break even sales / Original sales ) × Variable expense
She knows that her service is PERISHABLE, meaning if no one stays in the room, it generates no revenue that evening.
Perishable services refers to those services whose capacity can not be stored for sale in the future. One characteristic that is common to perishable services is that the system of the services are usually assigned for delivery during a specific period of time.
Answer:
The answer is:
A. Yes
B. 3.6
C. 3.43
Explanation:
A. Yes, the warrants is dilutive because the average market price($15) is higher than option price($10).
B. Since there is no preferred shares or preferred dividends, the basic earnings per share is:
Net income ÷ weighted average shares
= $360,000 ÷ 100,000 shares
= 3.6
C. First we need to find the incremental shares. The formula is:
[(average market price - option price) ÷ average market price]x number of shares
[($15 - $10) ÷ $15] x 15,000 shares
$0.33333 * 15,000 shares
5,000 shares
Total number of shares is now 105,000shares(100,000 shares + 5,000)
Therefore, diluted shares is now
$360,000 ÷ 105,000 shares
3.43
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
Answer:
Overall, each idea provides the notion that you need to learn about financial education and how financial security will impact a person's present and future life.
Explanation:
1- Personal finances correspond to 80% of behavior and 20% of head knowledge, due to the fact that it is important to learn about financial education in theory, but it is the set of balanced actions on how to deal with money that will impact fact about your financial life. That is, how you deal with the money you have is what it dictates if you have financial intelligence.
2- Many Americans are buried in debt many times for not seeking specific knowledge about finance, or for having the knowledge but not applying it. It is necessary for society to be aware of the importance of knowing how to manage your money, how to make investments, how to consume healthily and how to deal with your money in an advantageous way.
It is also necessary that there is more information available on financial education in social institutions and that this concept be more widely disseminated and discussed in society.
3- Learning the language of money means knowing how to manage your money. People often make harmful financial decisions without being aware of the impact that such decisions will have on their present and future. Knowing how much you earn, how much you spend and how much you save, is essential to keeping your finances balanced.
People can start by creating monthly spreadsheets to control their spending, there are several ways to know where your money is going and if it matches your life goals.
There is also a lot of information available on the internet about investments, how to invest in the short and long term and how to make money effectively.