Answer:
$2,800
Explanation:
Particulars Amount
Favorable temporary difference at the end of 20X2 $7000
* Income tax rate <u> 40% </u>
Deferred tax asset account at the end of 20X2 <u>$2,800</u>
Answer:
$8.78
Explanation:
National advertising made dividend payment of $0.75 per share
The dividend is expected to grow at a constant rate of 6.50%
= 6.50/100
= 0.065
The company beta is 1.85
The required return on the market is 10.50%
The risk free rate is 4.50%
The first step is to calculate the rate of return using the CAMP model
R = Risk free rate+beta(market return-risk free rate)
= 4.50%+1.85(10.50%-4.50%)
= 4.50%+1.85×6%
= 4.50%+11.1
= 15.6
Required rate of return= 15.6
Therefore the current stock price can be calculated as follows
Po= Do(1+g)/(r-g)
Where Do= 0.75, g= 0.065, r= 15.6
Po= 0.75(1+0.065)/(0.156-0.065)
Po= 0.75(1.065)/0.091
Po= 0.7987/0.091
Po= $8.78
Hence the company current stock price is $8.78
Answer:
d. Decrease by 0.045 minutes
Explanation:
<u>First Case</u>
Time per unit for 250 batch size = (30 / 250) + 5 minutes
Time per unit for 250 batch size = 5.12 minutes
<u>Second case</u>
Time per unit for 250 batch size = (30 / 400) + 5 minutes
Time per unit for 250 batch size = 5.075 minutes
The decrease in manufacturing time = Old-time - New time = 5.12 - 5.075 = 0.045 minutes
. So, it Decrease by 0.045 minutes
Answer: $3.46
Explanation:
Given the following :
Current share price (P0) = $90 per share
Required return on stock= 8%
total return on the stock is evenly divided between a capital gains yield and a dividend yield ;
Therefore, Required return on stock= 8% ;
4% capital gain yield + 4% Dividend yield = 8%
Growth rate = 4% = 4/ 100 = 0.04
D1 = D0(1 + g)
D1 = value of next year's Dividend
D0 = current Dividend yield
g = Constant growth rate
D1 = current stock price * g
D1 = 90 * 0.04 = 3.6
D1 = D0(1 + g)
D0 = D1 / (1+g)
D0 = 3.6 / (1+ 0.04)
D0 = 3.6 / 1.04
D0 = $3.46
B - The quantity of milk supplied will decrease
