Answer:
11.14%
Explanation:
Blume's formula is used to combine both arithmetic and geometric returns. This is because using arithmetic growth rate exclusively would be overly optimistic for longer time horizons and on the other hand, using geometric growth rates exclusively would be overly pessimistic for short time horizons.
Using the attached formula, plug in the given numbers;
R(T) would be the sale growth rate we need to calculate.
R(T) = 
R(T) =0.0257 + 0.0857
R(T) = 0.1114 as a decimal
Therefore, the forecast sales growth would be 11.14%
Answer: $23.63 million
Explanation:
First and foremost, we can calculate the quarterly common stockholder dividend which will be:
= $0.25 × 1 Million
= $0.25 million
Then, the annual dividend to the common stockholders will be:
= $0.25 million × 4
= $1 million
The quarterly preferred stockholder dividend will be calculated as:
= $0.50 × 0.50 Million
= $0.25 million
We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:
= $0.25 million × 4
= $1 Million
Total Dividend would then be:
= Annual dividend to common stockholders + Annual dividend to preferred stockholder
= $1 Million + $1 Million
= $2 Million
The value of the retained earnings balance at the end of the year will then be:
= Retained Earnings at the beginning of the year + Net Income – Dividend
= $23.45 + $2.18 - $2.00
= $23.63 million
Answer:
(a)$0
Explanation:
Since the book value is less than the generated future cash flows so there would not be any loss on impairment of the asset
The book value is computed below
= Owns value - accumulated depreciation
= $290,000 - $150,000
= $140,000
The book value is $140,000 and the generated cash flows are $165,000. So, no value would be recognized
Answer:
C) tracking clients investment
Explanation:
Person finance involves the management of an individual's or a family's financial aspects, such as budgets, taxation, savings, and investments. A personal finance manager evaluates the financial need of an individual or a family . He or she assist in making decisions that lead to the attainment of short-term and long-term financial goals.
A personal finance manager plays several roles in helping their clients achieve their objectives, some of them include
- Develop realistic financial goals with the clients.
- Make plans on how the client will achieve his or her goals
- Recommending and undertaking investments on behalf of the clients.
- Assist clients in making specific provision for anticipated expenses such as education and retirement.
- Monitor investments on behalf of the client.
