Answer:
A. $405 million
B. $332 million
Explanation:
A. Calculation for How much was Carter's net income for 2016
Using this formula
2016 Net income=Sales revenue - Cost of goods sold - Other expenses
Let plug in the formula
2016 Net income= $900 million - $270 million - $225 million
2016 Net income = $405 million
Therefore How much was Carter's net income for 2016 is $405 million
B. Calculation for How much was Carter's cash balance at the end of 2016
Using this formula
2016 Ending cash balance =Beginning balance + Cash receipts - Payments
Let plug in the formula
2016 Ending cash balance=$ 110 millon + $872 million- $375million - $275million
2016 Ending cash balance= $332million
How much was Carter's cash balance at the end of 2016 is $332million
Answer: $50
Explanation:
We can use the Gordon Growth Model of Stock Valuation. The formula is thus,
P = D1 / r – g
D1 = the annual expected dividend of the next year
r = rate of return
g = the expected dividend growth rate (assumed to be constant)
There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.
Plugging that into the formula therefore will give us
P = D1/r
P= 4.5/0.09
= $50
Current Stock Price is $50.
Answer:
$3,520.65
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
= $250 × (1 + 0.0275)^5 + $450 × (1 + 0.0275)^4 + $650 × (1 + 0.0275)^3 + $850 × (1 + 0.0275)^2 + $1,100 × (1 + 0.0275)^1
= $286.32 + $501.58 + $705.11 + $897.39 + $1,130.25
= $3,520.65
We do the reversing time period and according to that the calculation can come.
Answer:
The correct answer is (C)
Explanation:
Recording sales is one of the essential processes to make sure the transparency within the company. It helps to cross-check sales whenever a company wants to. Overall, in the above scenario, the customer service department has received calls from the customers but there is no record which shows that there are unrecorded sales which itself is a big red flag.
Answer:
1. 2,584
Explanation:
future payments: $1,000 in 1 year and $2,000 in 3 years
the present value of alternative I (one year bond):
$1,000 / 1.06 = $943.40
the present value of alternative II (first 2 years and then 1 year):
$2,000 / 1.065 = $1,877.93 ⇒ PV at year 2
PV at year 0 = $1,877.93 / 1.07² = $1,640.26
the total present value of both options = $943.40 + $1,640.26 = $2,583.66 ≈ $2,584
