Pension plans are a type of retirement plan in which the employee and employer make contributions. These contributions are invested and to be received upon retirement. In most all cases pension plans are tax exempt. The two types of pension plans are defined benefit plans and defined contribution plans. A defined benefit plan guarantees an amount upon retirement no matter how the investment performed. A defined contribution plan is not a guaranteed amount and heavily depends on the investment performance.
Answer: Building a business case for the new product
Explanation: A Good business case for a new product is a process during the stage of product analysis of the new product development.
It considers the cost, how it will survive the current market and ways to go about making the product a success.
At this stage, Gopro will analyse the product costs, profitability and sustainability of the product in the market as this will determine if the product will survive or not.
Answer:
$84
Explanation:
The computation of each unit of the company's inventory under absorption costing is shown below:
= Direct material used + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $12 + $18 + $25 + $29
= $84
We simply added the first four-unit cost through which total unit cost would come
All other information which is given is not relevant. Hence, ignored it
Answer:
Return on Investment is 12%.
Explanation:
Net income = Dividend = $0.60
Current Value = $33
Original Value = #30
Formula for Return on Investment:
Return on Investment = (Net Income + (Current Value - Original Value)) / Original Value x 100
ROI = (($0.60 + ( $33 - $30 ) ) / $30 ) x 100
ROI = (($0.60 + $3 ) / $30 ) x 100
ROI = ( $3.60 / $30 ) x 100
ROI = 0.12 x 100
ROI = 12%
So Return on Investment is 12% for the given investment.
Answer:
100
Explanation:
The market capitalization rate is 12%
= 12\100
= 0.12
Its expected ROE is 14%
= 14/100
= 0.14
The expected EPS is $3
The Plow back ratio is 80%
= 80/100
= 0.8
The first step is to calculate the dividend payout ratio
= 1-0.8
= 0.2
The expected dividend can be calculated as follows
=0.8×3
= $2.4
The growth rate can be calculated as
follows
= 0.8×0.14
= 0.112×100
= 112%
The value can be calculated as follows
= 2.4/0.12-0.112
= 2.4/0.008
= 300%
Therefore, the P/E ratio can be calculated as follows
= 300/3
= 100
