Answer:
A) $63.00
Explanation:
To find the current price of Buckeye Corporation's stock we can use the growth perpetuity formula:
current price of stock = current dividend / (required rate of return - dividend growth rate)
current price of stock = $3.15 / (13% - 8%) = $3.15 / 5% = $63
Answer:
6.08%
Explanation:
Rosita's restaurant has a sales of $4,500
The total debt is $1,300
The total equity is $2,400
The profit margin is 5%
=5/100
= 0.05
Therefore the return on assets can be calculated as follows
= profit margin×sales/total debt +total equity
= 0.05×$4,500/($1,300+$4,200)
= 225/3,700
= 0.0608×100
= 6.08%
Hence the return on assets is 6.08%
A retrenchment strategy <span>is another term for a defensive strategy.
</span>Companies use the retrenchment strategy with the goal to reduce the diversity or the overall size of the operations of the company and by doing so to cut expenses and reach to a more stable financial position.
<span>This strategy will revitalize the organizational resources.</span>
Answer:
The correct answer is letter "A": Individuals tend to gamble more with their money when the future is uncertain.
Explanation:
Risk aversion in Finance describes an investor who is just willing to accept a small level of risk on his investments. A risk-averse investor likes less risk and is prepared to accept fewer returns because of his choice. In a few words, risk aversion represents the likelihood investors prefer to secure their investments instead of risking more expecting higher returns.
Thus, <em>individuals gambling more when the future is uncertain reflects an opposite scenario to risk aversion.</em>
Answer:
d.$7,200
Explanation:
For computing the ending inventory, first, we have to compute the per unit product cost which is shown below:
= (Direct materials cost + Direct labor cost + Variable factory overhead cost) ÷ Number of units produced
= ($25,000 + $35,000 + $12,000) ÷ 20,000 units
= $72,000 ÷ 20,000 units
= $3.6
Now the ending inventory equal to
= Ending inventory units × per unit product cost
= 2,000 units × $3.6
= $7,200
The ending inventory = Sales units - produced units
= $20,000 - $18,000
= $2,000
