Answer:
the payback period is 4.15 years
Explanation:
The computation of the payback period is shown below:
= Initial investment ÷ Generated cash flows
= $17,000 ÷ $4,100
= 4.15 years
By dividing the initial investment from the annual cash flows per year we can get the payback period
hence, the payback period is 4.15 years
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
a. 12 times
b. 30.42 days
Explanation:
Data provided in the question
Sales = $4,560,000
Average account receivable = $380,000
So, The computation is shown below:
a. Account receivable turnover ratio is
= Sales ÷ average account receivable (net)
= $4,560,000 ÷ $380,000
= 12 times
b. Now the number of days sales in receivable is
= Total number of days in a year ÷ account receivable turnover ratio
= 365 days ÷ 12 times
= 30.42 days
Answer:
O A
they have a low rate of interest
O c. they allow a longer repayment period
OD.
they have an easier application process
For 1/20 to be a decimal, it would be 0.05.
Answer:
Price of the stock today = $199.83
Explanation:
The current price of the stock can be computed using the two stage dividend growth model of the DDM approach. The DDM or dividend discount model values a stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today using the two stage growth model is attached.
Price of the stock today = 1.95 * (1+0.2) / (1+0.12) + 1.95 * (1+0.2)^2 / (1+0.12)^2
+ 1.95 * (1+0.2)^3 / (1+0.12)^3 + ... + 1.95 * (1+0.2)^12 / (1+0.12)^12 +
[ (1.95 * (1+0.2)^12 * (1+0.09)) / (0.12 - 0.09) ] / (1+0.12)^12
Price of the stock today = $199.83
