A like insurance contracts they involve transefer of risks
Answer:
$34.22
Explanation:
The computation is shown below:
Value of the stock = Next year dividend ÷ (Required rate of return - growth rate)
where,
Growth rate equal to
= {($0.76 ÷ $0.632)^1 ÷ 3} - 1
= 6.34%
And, Next year dividend would be
= $0.76 × (1 + 6.34%)
= $0.81
So, the value of the stock would equal to
= 0.81% ÷ (8.70% - 6.34%)
= $34.22
The answer to this question is: Effective manager
in business, effectiveness refers to the ability for a person to make use of all resources that available to him/her in order to accomplish the goal.
This trait is considered as the most desired trait that most of the shareholders seek when they're choosing the leader for their company.
Answer:
10.23%
Explanation:
Calculation for What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant
First step is to calculate the Net income
.15 = Net income/ 375,000
Net income=.15($375,000)
Net income= $56,250
Now let calculate profit margin using this formula
Profit margin = Net Income/Sales
Let plug in the formula
Profit margin= $56,250/$550,000
Profit margin= 0.1023*100
Profit margin=10.23%
Therefore the profit margin that the firm would need in order to achieve the 15% ROE, holding everything else constant is 10.23%
Answer:
The company will make monthly payments of $299.71 for three years.
This means a total payments of $10,789.60 after the 36th month with an interest charge of $164.60.
Explanation:
a) Data and Calculations:
Cost of new machine = $12,500
Down Payment 15% = 1,875
Amount financed through a credit union = $10,625
Interest rate charged by the credit union = 1% per year compounded monthly.
From an online finance calculator:
Monthly Payment = $299.71
Sum of all periodic payments = $10,789.60
Total Interest = $164.60
