Why is it important to understand the terminology associated with student<br> finances?

Last year, Cool Lope, Inc. had an inventory turnover rate of 6.8. This year, the turnover rate is 7.1. Based on this information

AnnyKZ [126]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is sold in a given period of time period such as in a quarter or in a year.

The formula is Cost of goods sold ÷ the average inventory.

Higher inventory is better than lower inventory because the higher the inventory turnover, the better a business is selling goods(inventories) very quickly and that demand for their product exists. While low inventory turnover depicts weaker sales and declining demand for a company's products

8 0

3 years ago

MGM Resorts Incorporated is expected to grow at an exceptionally high rate over the next 2 years due to the success of Macau cas

Burka [1]

Answer:

The value of a share of MGM Resorts stock today will be $16.42

Explanation:

In order to calculate the value of a share of MGM Resorts stock today we would have to calculate the following steps:

Step-1, Dividend for the next 2 years

Dividend per share in Year 0 (D0) = $1.20 per share

Dividend per share in Year 1 (D1) = $1.4400 per share [$1.20 x 120%]

Dividend per share in Year 2 (D2) = $1.7280 per share [$1.4400 x 120%]

Step-2, Share Price in Year 2

Dividend Growth Rate after Year 2 (g) = 4.00% per year

Required Rate of Return (Ke) = 14.00%

Share Price in Year 2 (P2) = D2(1 + g) / (Ke – g)

= $1.7280(1 + 0.04) / (0.14 – 0.04)

= $1.7971 / 0.10

= $17.97 per share

Step-3, The Current Stock Price

As per Dividend Discount Model, Current Stock Price the aggregate of the Present Value of the future dividend payments and the present value the share price in year 2

Year Cash flow ($) PVF at 14.00% Present Value of cash flows ($)

[Cash flows x PVF]

1 1.4400 0.877193 1.26

2 1.7280 0.769468 1.33

2 17.97 0.769468 13.83

TOTAL 16.42

Hence, the value of a share of MGM Resorts stock today will be $16.42

6 0

3 years ago

John Smith, one of three managers at BSG Labs, drafted a policy that would allow his department to do more testing in his lab. T

jok3333 [9.3K]

Answer:

b. The policy made decisions for other departments in the company.

Explanation:

John Smith made the policy alone without involving the other managers. When the policy was implemented, it had to work with other departments to ensure success.

As there are 3 managers and 3 departments at BSG Labs, John Smith should have formulated the new policy with the other managers, so that issues such as scheduling and coordination between bthe various departments will run smoothly.

3 0

3 years ago

Read the sentence.

kow [346]

Answer:I think its 4

Explanation:

4 0

3 years ago

Read 2 more answers

Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of retur

Tanya [424]

Answer:

The answer is $7,900

Explanation:

Formula of Residual Income=Net Operating Income-(minimum required rate of return*average operating assets)

Residual income (RI)=$143,700-($970,000*14%)

RI=$7,900

Further we can alsocalculate

Return on investment (ROI)=$143,700/$970,000=14.81%

8 0

3 years ago

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Why is it important to understand the terminology associated with student finances?