Answer:
the stock price will be of 203.06 dollars
Explanation:
Price earning ratio: 22
PE: price / earnings per share
payout ratio: 466,668/864,200 = 0.54
so: retention ratio: 0.46
return on equity: 864,200 / 5,800,000 = 0.149 = 14.90%
sustainable grow rate: return on equity x retention ratio
0.149 x 0.46 = 0,06854
The next-year income, will grow by 0.06854
864,200 x 1.06854 = 923,432.268
There is 100,000 shares outstanding so:
EPS: 9.23 dollars
Price/Earning ratio: 22 Therefore Price = 9.23 x 22 = 203.06 dollars
Answer:
it lowers the payout the company has to make.
Answer: According to the guidelines of goal-setting theory, the following goals is most likely to stimulate performance:
1. Obtain sales levels, 15 percent over last year
2. Develop a cure for AIDS
Explanation:
Goal setting mostly inclines towards the process of an action plan fashioned to motivate and lead a person toward a objectives.
Goal setting is one of the key component of personal-development and theory in management.
The theory states that the unsophisticated most direct motivational cerebration of why some people perform better is because they have different performance objectives. Difficult specific goals will lead to higher performance than easy objectives or no objectives or even the setting of an abstract goal.
Answer:
d. An index fund with beta = 1.0 should have a required return of 11%.
Explanation:
required rate of return for a market indexed portfolio = 6% + (1 x 5%) = 11%
If the required rate of return is less than 11%, the beta is lower than 1.
If the required rate of return is more than 11%, the beta is larger than 1.
If beta doubles, then the required rate of return = 6% x (2 x 5%) = 16%
Margot company purchases $100,000 face amount, 6% semi-annual bonds for $110,000 when the market interest rate is 5%. margot should recognize the following interest revenue for the first 6-month period:
$3,000
Rationale:
$100,000 x (6% x 6/12)
The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
The amount that a lender charges a borrower for the use of assets on top of the principal is known as the interest rate.
The money generated from a deposit account at a bank or credit union is likewise subject to an interest rate.
Simple interest is used in most mortgages. Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
The interest rate will be lower for a borrower who the lender deems to be low risk. The interest rate on a loan will be greater if it is thought to be high risk.
Learn more about interest rates here:
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