Answer:
1. 17%
2. 42.5%
3. $2,748,900
4. 44%
Explanation:
1. Return on Investment for 2017
=
=
= 17%
2. Profit Margin 2017
=
=
= 42.50%
3. Should the sales increase by 10% in 2018 then the new sales figure will be;
= $5,880,000 + ($5,880,000 *10%)
= $6,468,000
Profit = Sales * Profit Margin
= 6,468,000 * 42.5%
= $2,748,900
Return on Investment for 2018
=
=
= 18.7%
4. Investment turnover equal for 2018
=
=
= 44%
Have utility
This is the only logical answer. The rest are just material things like money, and style always is changing so you can’t put value on style.
Answer:
So the firm's current stock price will be $40.88
Explanation:
We have given that Enterprises expected earnings next year is $3.68
So EPS next year = $3.68
Retention rate is given as 40%
Dividend payout ratio = 100 - 40 = 60 %
Dividend paid next year = $3.68×0.6 = $2.208
We know that price of the stock =
So the firm's current stock price will be $40.88
Answer:
$14, 984
Explanation:
In compound interest, interest earned increases with time. the formula applied in compound interest is
FV = PV × (1+r)n
Where FV is the future vale
PV is the present value of $8,000
r is 8%
n is 8 years
Since interest is compounded twice per year, the number of compounds will be 16( 8 x 2). The applicable interest rate is 0.04%( 8%/12 x 6 months)
FV = $8000 x ( 1 + 0.04)16
FV = $8000 x 1. 872981
Fv = 14, 983.85
Fv = $14, 984