Answer:
a) Growth rate of earnings
using the sustainable growth rate formula which is the maximum growth rate that a company can sustain without external financing:
Growth rate = ROE * (1 - retention rate)
= 15% * (1 - 40%)
= 15% * 60%
= 9%
(Retention rate = 2/5 * 100 = 40%)
b) Price of equity using dividend growth model:
P₀ = D₀ (1 + g) / (re – g)
D₀ = the current dividend (whether just paid or just about to be paid) = $3
g = the expected dividend future growth rate = from A above (9%)
re = the cost of equity = 12%
= 3 (1 + 0.09) / (0.12 - 0.09)
= $109
c) Price of equity
P₀ = D₀ (1 + g) / (re – g)
= 4 (1 + 0.09) / (0.12 - 0.09)
= $145.33
Explanation:
At the estimated growth rate of 9%, should DFB increase the dividend payout, the price of equity would amount to $145.33 which is higher than the previous price of $109, so DFB is advised to raise its dividend
Answer:
$67,000
Explanation:
Remember that,
Cost of Goods Manufactured = Beginning WIP + Total Manufacturing Costs - Ending WIP
this can also be written as :
Ending WIP = Beginning WIP + Total Manufacturing Costs - Cost of Goods Manufactured
therefore,
Ending Work In Process Inventory = $25,000 + $200,000 -$158,000
= $67,000
The globalization of business sectors alludes to the converging of truly unmistakable and isolate national markets into one immense worldwide commercial center. Falling hindrances to cross-outskirt exchange have made it less demanding to offer universally. It has been contended for quite a while that the tastes and inclinations of purchasers in various countries are starting to focalize on some worldwide standard, along these lines making a worldwide market.
Answer:
The correct answer is: 15 points on the History exam.
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is calculating by subtracting the return of the best forgone option with the return of the chosen option. The outcome could be beneficial or prejudicial, depending on the case.
In the example (<u>refer to the attached table</u>), if the student chooses to score 94 in the economics exam then the student will get 76 in the History test. Thus, The opportunity cost of getting 94 instead of 77 in the Economics test, implies getting 76 instead of 91 in the History exam. It implies:
- Opportunity cost of the History exam = 91-76
- Opportunity cost of the History exam = 15
<em>The opportunity cost of scoring 94 on the Economics exam rather than a 77 is 15 points on the History test.</em>
Small changes in consumer demand can result in large variations in orders placed because of the Bullwhip Effect. Thus the correct answer is D.
<h3>What is a consumer?</h3>
The consumer is referred as an end user of any product or service. He is the person who utilizes or takes the benefit of the products purchased. The person who buys a product is called a customer.
Demand estimations result in ineffective supply chains due to the bullwhip effect which is a characteristic of distribution channels. As one moves higher up the supply chain, it informs of increasing inventory variations in reaction to variations in consumer demand.
Therefore, option D Bullwhip effect is appropriate.
Learn more about the Bullwhip effect, here:
brainly.com/question/2815747
#SPJ4
The complete question is attached below-
Small changes in consumer demand can result in large variations in orders placed because of the:
A) Supply chain
B) Safety stock requirement
C) Lead time effect
D) Bullwhip effect
E) FCFS scheduling
