The Whistling Straits Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell ne
1 answer:
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Answer:
profit margin is 16.0 %
gross profit rate is 39.6 %
Explanation:
given data
net sales = $248,700
cost of goods sold = $146,900
operating expenses = $58,000
net income = $39,900
beginning total assets = $473,900
ending total assets of $635,400
to find out
profit margin and gross profit rate
solution
we will apply here profit margin formula that is
profit margin = ..............1
put here value
profit margin =
profit margin = 16.04 = 16.0 %
and
gross profit rate formula is
gross profit rate = ..............2
put here value
gross profit rate =
gross profit rate is 39.72 = 39.6 %
Answer:
The correct solution is "$6,564.01". A further solution is given below.
Explanation:
The given values are:
beta,
= 1.6
market return,
= 15%
cash flow,
= $2,000
risk free rate of interest,
= 3%
Now,
The stock return will be:
=
=
=
The actual worth of the firm will be:
=
=
=
=
With 0.8 beta, the stock return will be:
=
=
=
So that I'm paying for the firm,
=
=
= ($)
Hence,
I'm paying,
=
= ($)