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elena-s [515]
3 years ago
13

Exeter Enterprise Inc. reported net sales of $250 million last year and generated a net income of $55.00 million. Last year’s ac

counts receivable increased by $35 million. What is the maximum amount of cash that Exeter Enterprise Inc. received from sales last year?
Business
1 answer:
MArishka [77]3 years ago
5 0

Answer:

The maximum amount of cash that Exeter Enterprise Inc. received from sales last year is $20 million

Explanation:

Net Income = $55 million

Increase in receivable = $35 million

Net Sales = $250 million

Cash Received from sales = Net Income - increase in receivables

Cash Received from sales = $55 million - $35 million

Cash Received from sales = $20 million

The maximum amount of cash that Exeter Enterprise Inc. received from sales last year is $20 million

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Joker stock has a sustainable growth rate of 7 percent, ROE of 10 percent, and dividends per share of $1.20. If the P/E ratio is
belka [17]

Answer:

P/E ratio = <u>Market price per share</u>

                Earnings per share

15 = <u>Market price per share</u>

       $4

Market price per share = 15 x $4 = $60

Growth rate = Retention rate x ROE

0.07 = Retention rate x  0.10

<u>0.07</u> = Retention rate

0.10

Retention rate = 0.7 = 70%

Dividend pay-out ratio = 100% - 70%

Dividend pay-out ratio = 30%

Earnings per share = 100/30 x $1.20 = $4

Explanation:

In this case,  we will apply the formula of price-earnings ratio, which is market price per share divided by earnings per share. The P/E ratio was given while the earnings per share is derived. The market price per share becomes the subject of the formula.

In order to determine the earnings per share, we need to obtain the retention ratio by applying the formula of growth rate. In this case, growth rate and ROE were provided in the question with the exception of retention rate. Thus,  the retention rate is made the subject of the formula.  Having obtained the retention rate, we will now obtain the dividend payout ratio which is 100% minus retention rate.

Then, we will obtain the earnings per share by dividing 100 by the pay-out ratio multiplied by the dividend per share.

8 0
3 years ago
Hi-Tek plans to pay a $6 per share dividend one year from today, and will increase the dividend by 4 percent per year forever. W
Lunna [17]

Answer:

The current share price if the required return on this stock is 16 percent is $50.

Explanation:

price = dividend next year /(required rate of return - growth rate)

         = 6/(16% - 4%)

         = 50

Therefore, The current share price if the required return on this stock is 16 percent is $50.

5 0
3 years ago
Forever Jewelers uses the perpetual inventory system. On April​ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500
Tema [17]

Answer:

Accounts Receivable $8,820

                   To Sales Revenue $8,820

Explanation:

The journal entry to record the sales revenue is shown below:

Accounts receivable A/c Dr $8,820

      To Sales revenue A/c $8,820

(Being merchandise sold on credit basis)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

The computation of sales revenue is shown below:

= Sales revenue - discount

= $9,000 - $9,000 × 2%

= $9,000 - $180

= $8,820

This is the answer but the same is not provided in the given options

6 0
2 years ago
In the boston consulting group growth-share matrix, each of the four categories in the matrix represents ______.
Mandarinka [93]

In the Boston Consulting Group growth-share matrix, each of the four categories in the matrix represents a different investment strategy

More about growth-share matrix:

The growth share matrix was developed through teamwork. It was initially drafted by BCG's Alan Zakon, who would later go on to become the company's CEO, and then improved with his colleagues.

Bruce Henderson, the creator of BCG, popularised the idea in his 1970 essay The Product Portfolio. About half of all Fortune 500 businesses employed the growth share matrix when it was at its most successful.

It continues to be a key component of corporate strategy lessons taught in business schools today.

Learn more about growth-share here:

brainly.com/question/26425181

#SPJ4

5 0
1 year ago
Use the following selected balance sheet and income statement information for Caroline Supply Co. (in millions) to compute asset
lidiya [134]

Answer:

3.15 times

Explanation:

Asset turnover = Sales revenue / Average total assets

Asset turnover = $1,135,420 / $360,600

Asset turnover = 3.15 times

7 0
2 years ago
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