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4 years ago

Assume Mussa Company has the following information available:

Business

1 answer:

crimeas [40]4 years ago

8 0

Answer:

B) $480,000

Explanation:

In this question we compare the operating income

In the first case,

The operating income is

= Contribution margin - fixed cost

where,

= (Selling price per unit - Variable cost per unit) × Expected sales units per year

= ($100 - $45) × 20,000 units

= $1,100,000

And, the fixed cost is $420,000

So, the operating income is

= $1,100,000 - $420,000

= $680,000

In the second case,

The operating income is

= Contribution margin - fixed cost

where,

= (Selling price per unit - Variable cost per unit) × Expected sales units per year

= ($100 - $45) × 20,000 units

= $1,100,000

And, the fixed cost is $420,000 + $200,000 = $620,000

So, the operating income is

= $1,100,000 - $620,000

= $480,000

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Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i

Nuetrik [128]

Answer:

Stock's current market value = $44.87

Explanation:

We can solve this stock valuation problem using DDM (Dividend Discount Model).

Lets find the dividends for the years:

D0 = $1.32

D1 = $1.32*1.3 = $1.716

D2 = $1.716*1.1 = $1.888

D3 = $1.888*1.05 = $1.982

The formula of stock valuation:

$P_n=\frac{D_{n+1}}{k_e-g}$

Lets calculate the terminal value after Year 3 afterwards:

$P_n=\frac{D_{n+1}}{k_e-g}\\P_n=\frac{1.982}{0.09-0.05}\\P_n=49.55$

<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05

Now,

The present value of the stocks is gotten using formula:

$P_n=\frac{D_{n+1}}{(1+r)^n}+\frac{Terminal}{(1+r)^n}$

So, we have:

$P_0=\frac{1.716}{1.09}+\frac{1.888}{1.09^2}+\frac{49.55}{1.09^2}\\P_0=44.87$

Stock's current market value = $44.87

4 0

3 years ago

Which finance option requires the most debt obligation to the person taking it? loan

Semmy [17]

I think the answer is a loan

8 0

3 years ago

Trust based on a person's competence would be summarized by this team member's affectionate statement towards another team membe

Maslowich

Answer:

The correct answer is:

I trust you to be able to accomplish this task (C)

Explanation:

First of all, you have to know the meaning of the word competence, and competence is a collection of related relevant abilities, know-how and skills required to act effectively on a job or situation. Which is a clear message passed by the speaker in the statement "I trust you to be able to accomplish this task", because the speaker knows that his team member possesses the right skills to carry out a task successfully.

The statement in option D ( "I trust you to do the right thing." ) also tells a little about competence because one of the definitions of competence highlights being sane, and one needs to be sane to do the right thing, but it is only second choice when compared to the statement in option "C".

Next time when you are faced with this kind of question, identify the keyword ( which in this case is competence), and use that to answer the question.

7 0

4 years ago

The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its a

svetoff [14.1K]

Look on jiskha you will find your answer 14 u promise no lie

5 0

4 years ago

Career patterns involving movement across specializations and disciplines are becoming less prevalent. True or False

tigry1 [53]

Answer:

False

Explanation:

Career patterns involving movement across specializations and disciplines are becoming more prevalent. From the company’s perspective, failure to help employees plan their careers may result in a shortage of employees, low employee commitment, and ineffective use of training dollars. From the employee’s perspective, lack of career management may mean frustration, feelings of not being valued, and unable to find acceptable work should a job change be necessary. The career patterns are changing nowadays ,involving movement across specializations or disciplines . The more prevalent career patterns, involves more frequent job changes and across specializations .

4 0

3 years ago