Answer:
option c i.e. g=11.81%
Explanation:
growth can be obtained by using given relation:
where
D IS DIVIDEND = 2.25
current price = $60
rate of return = 16%
0.16= 0.0375(1+g)+ g
g=11.81%
Answer:
$30,220
Explanation:
Inventory purchased $299,000
Discount (299,000*2%) ($5,980)
Freight Charges $18,500
Inventory returned ($7,800)
Net purchases $303,720
Cost of goods sold=opening inventory+purchases-ending inventory
$335,000=$61,500+$303,720-ending inventory
Ending inventory=61,500+303,720-335,000
Ending inventory=$30,220
Answer:
Option D The most complete model in the world is still only a partial reflection of organization reality.
Explanation:
The reason is that the paper works are partial reflection of organization until you visit the organization daily, notice the staff behavior, their key norms, their stories, their decision making attitudes, etc. These all things are not reflected in papers. The project must have a subjective and objective factors which aligns with the organization's values, policies, etc.
The statement indicates the excessive research about the project implementation. The post and pre-audit of the plans and procedures which are controllable by the organization. The project must also have space for the changes which a good project appraiser will be looking for.
Answer:
$321,600
Explanation:
debt equity ratio = debt / equity
since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:
- then $300,000 / $1.80 = $166,667 will be new equity
- and $133,333 will be new debt
total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 + $139,933 = $321,600
flotation costs include all the costs associated with issuing new stocks or taking new debt.
