Answer:
A) 5.0%
Explanation:
AEC Company expects to pay a dividend over the next year of $2 at a stock price of $20 per share, thus the dividend rate over next year = $2/ $20 = 10%
The WACC is 12%, the company is financed by 30% debt and 70% equity, and the cost of debt is 5%;
WACC 12%= 30% x cost of debt 5% + 70% x cost of equity
->Cost of equity = (12% -30%*5%)/70% = 15%
Thus expected growth rate of dividend = Cost of equity 15% - dividend rate over next year 10% = 5%
Answer:
Leave the price alone. Although it may lack some of the features that competitors’ models have, the Boss brand is well-recognized and well-respected in the market
Explanation:
You chose to lower the price to $359.That was the best choice.During the maturity stage of the product life cycle, increased competition eventually forces price cutting, and market share leadership may outweigh profit as a pricing objective, so this is a good option. However, it would take some research to determine whether the company can still make a profit at this price.
Ummmmm I will go with answer A cause at my house its always like that.
Answer: (D)
Explanation: Reports and financial statements prepared by accountants are useful tools to evaluate an organisation's liquidity,solvency and stability. It helps the general public and other stakeholders to get the required data and information needed for decision making.
The inflationary trends shows the relationship between demand and supply in an economy which will help management to implement the necessary steps that will enhance it's operations.
The balance of trade between 2 countries provides necessary details for decision makers on when and how to improve or manage exports and imports.
Answer:
7.47 times
Explanation:
The computation of operating leverage is shown below:-
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed costs)
= ($1,896,000 - $804,000 - $180,000) ÷ ($1,896,000 - $804,000 - $180,000 - $520,000 - $270,000)
= $912,000 ÷ $122,000
= 7.47 times
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT
The correct answer is 7.47 times.Therefore, the option is not available.
