Answer:
The total sales of a product, by all competitors in the industry, is:____
e. lowest in the market introduction stage.
Explanation:
The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.
Answer:
0.73
Explanation:
Given that
WACC = 11%
Tax rate = 34%
Cost of equity = 14.9 %
Cost of debt = 8.6%
Recall that
WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)
We are to find
Cost of debt and cost of equity
Let
Cost of debt be x
Cost of equity be (1 - x)
Thus,
0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)
x = 0.4228
Therefore,
Debt-equity ratio
= Cost of debt/cost of equity
= 0.4228/(1 - 0.4228)
= 0.73
Answer:
$190.64
Explanation:
Data provided in the question:
Current selling price of shares = $180 per share
Dividend paid = $10.18
Expected growth rate, g = 6% = 0.06
Required rate of return, r = 12% = 0.12
Now,
The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ
here, n = 2 ( i.e the duration of next year and the following year )
thus,
D1 = $10.18 × (1 + 0.06)²
or
D1 = $11.438
Therefore,
Price of stock one year from now = 
= 
= 190.637 ≈ $190.64
Answer:
$441,000
Explanation:
The computation of the cost of merchandise sold is shown below:
Cost of merchandise sold = Opening inventory + net purchase - ending inventory
where,
Opening inventory = $14,500
Net purchase is
= $475,000 - $15,000 - $9,000 + $7,000
= $458,000
And, the ending inventory is $31,500
So, the cost of merchandise sold is
= $14,500 + $458,000 - $31,500
= $441,000
Answer:
<u>Generally accepted accounting principles</u>
Explanation:
Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.
GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.
Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.
