Answer:
d. 8.18 million
MVA is $380 million
Explanation:
Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.
Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million
Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million
Return on investor-supplied capital = $115 million x 7.5% = $8.625 million
Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million
MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.
MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million
Answer:
identifying pricing constraints.
Explanation:
From the question we are informed about George and Arthurine Renfro decided who decided to start a family business in 1990 and market chowchow, a southern regional food, they had to determine how they would price the chowchow by examining the demand for the product (would people rather eat home-made or store-bought), the cost of getting the jars for bottling the chowchow, and how much it would cost to distribute the product to area stores. In other words, in this case, the Renfros had to begin the development of their pricing strategy by identifying pricing constraints. .
Pricing constraints can be regarded as
factors which brings about limit of latitude of prices which a company may set.
Answer:
In order to find the dividend 8 years from now we will use the formula D*(1+R)^N
Right now
D= 1.84
R=1.65%
N= 8
1.84*(1.0165)^8
=2.097
The dividend 8 years from now will be $2.097.
Explanation:
<span>This type of marketing is known as imperfect competition as many companies are selling similar products, but the products aren’t similar enough to compete with each other in the market. One way that a company in this type of market can get the most for their money is by producing goods that have a marginal revenue that equals the marginal cost. The company also can continue to develop new products in order to keep us with the demands of its customers. In order to increase the demand for their product, the company may improve its quality and design in order to make it more useful for its customers.</span>
Answer:
the ending inventory is $13,200
Explanation:
The computation of the dollar value of the ending inventory under variable costing is shown below:
= Variable production cost per unit × difference in units
= $13.20 per unit × (5,200 units - 4,200 units)
= $13.20 per unit × 1,000 units
= $13,200
hence, the ending inventory is $13,200
