Answer: $2,500,000
Explanation:
Discontinued operations is when a particular division in a company shutdown.
With regards to the above question, the before-tax amount that Mercedes should report as loss on discontinued operations in its 2013 income statement will be:
= $2,000,000 + ($3,000,000 - $2,500,000)
= $2,000,000 + $500,000
= $2,500,000
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
An example of primary data that Armstrong could use in this research project is:
d. Discussions among focus groups made up of small number of gardeners led by an interviewer.
Explanation:
Primary data is directly collected by the researcher. It is the opposite of secondary data, which is data collected from primary sources and made available for use in a research. Primary data is first-hand information collected during a research project. Focusing on the discussions by gardeners will enable Armstrong to assess their perceptions about rose as a high-maintenance plant.
Warren can submit Form W-4V to have taxes withheld from his Social Security is <span>Warren and shirley want to avoid having a balance due next year.
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Answer:
a. ROE (r) = 13% = 0.13
EPS = $3.60
Expected dividend (D1) = 50% x $3.60 = $1.80
Plowback ratio (b) = 50% = 0.50
Cost of equity (ke) = 12% = 0.12
Growth rate = r x b
Growth rate = 0.13 x 0.50 = 0.065
Po= D1/Ke-g
Po = $1.80/0.12-0.065
Po = $1.80/0.055
Po = $32.73
P/E ratio = <u>Current market price per share</u>
Earnings per share
P/E ratio = <u>$32.73</u>
$3.60
P/E ratio = 9.09
b. ER(S) = Rf + β(Rm - Rf)
ER(S) = 5 + 1.2(13 - 5)
ER(S) = 5 + 9.6
ER(S) = 14.6%
Explanation:
In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.
In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.
