Answer:
NPV = $40,952.46
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-28,000
Cash flow in year 1 to 3 = $32,500 - $2,800 = $29,700
I =14%
NPV = $40,952.46
To find the NPV using a financial calacutor:
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
I hope my answer helps you
Answer:
Required rate of return on clover's stock is 8.99%
Explanation:
The required rate of return on Clover's stock can be computed using Miller and Modgliani capital asset pricing model formula given below:
Ke=Rf+beta*(Rm-Rf)
Ke is the required rate of return, the unknown
Rf is the risk free rate of return of 4.00%
beta for Clover is 0.80
Rm is the not known as well but can computed using the Parr paper's details below:
beta is 1.442
required return IS 13%
13.00%=4.00%+1.442*(Rm-4.00%)
13%-4%=1.442*(Rm-4.00%)
9%=1.442*(Rm-4.00%)
9%/1.442=Rm-4%
6.24%
=Rm-4%
Rm=6.24%+4%
Rm=10.24%
Now the required return on Clover's stock can be computed
Ke=4%+0.8*(10.24%-4%)
Ke=8.99%
Answer:
Hie, the question you have provided is <em>missing</em> the Sales figures.
However steps to calculate the accounts receivable turnover are explained below:
Accounts receivable turnover is an activity ratio that shows how <em>effective</em> is the company<em> managing credit extended to debtors</em>.
Accounts receivable turnover = Net Credit Sales / Accounts Receivable
<u>From Our Scenario we have the following</u>
<em>Net Credit Sales = Missing</em>
<em>Accounts Receivable = $25,000</em>
The Ratio is measured in times.
Answer: A) meeting a customer's expectations doesn't always lead to brand loyalty.
Explanation:
It is possible to meet the expectations of a supplier and the supplier would still move on if they feel like they would get a better deal somewhere especially if the other supplier meets their expectations even better than the first supplier did.
The company in question preferred that it received its parts all at once and the supplier could not do that but they were still able to supply the goods required. They were therefore meeting expectations but not in an adequate enough manner which is why the company found someone better.
