To calculate free cash flow, locate the income statement and balance sheet. Start with net income and add back charges for depreciation and amortization. Make an additional adjustment for changes in working capital, which is done by subtracting current liabilities from current assets. Then subtract capital expenditure (or spending on plants and equipment)
Answer:
It is called a Business to Business or B2B Marketing
Explanation:
B2B or Business to Business Marketing simply occurs when a business organisation decides to going into transaction with an other business organisation. The two businesses can be within the same locality or not. A criteria is that a B2B marketing involves a commercial transactions which would be to the benefit of both parties.
The <u>opposite of B2B is B2C (Business to Consumer) marketing, this is the commonly known type of marketing where a consumer/individual</u> patronizes the products of a manufacturer or business organisation.
B2B will usually occur when a company needs certain products or materials to complete its own finished goods and this can be purchased from another organisation that has been adjudged to be a producer of same.
It could also occur, when a business is required to take on the services of another business for instance in audit cases.
In the case of the question, the global positioning system is a finished product of the electronics company required by the car manufacturer to complete his own finished product (the car). Hence, the B2B marketing.
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Answer:
The internal growth rate is 4.36%
Explanation:
net income = 8.3%*386,400
= $32,071.20
net working capital = current assets – current liabilities
current assets – 37200 = 16700
= $53,900
total assets = current assets + net fixed assets
= 53,900 + 391,500
= 445,400
Then:
ROA = 53,900/445400
= 0.072005
b = 1 - 48% = 0.52
internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)
= 0.041763/0.958237
= 4.36%
Therefore, The internal growth rate is 4.36%
Answer:
Cost of common stock for Whitewall is 16.00%
Explanation:
Ke = D1 / Price +g
D1 = Ke (Price + g)
D1 = $1.60 * (1+0.02)
D1 = $1.60 * (1.02)
D1 = $1.632
Ke = D1 / Price +g
We solve for Current dividend to derive the Cost of common stick
Ke = 1.632 / (11.66) + 2%
Ke = 1.632 / 11.66 + 0.02
Ke = 0.139966 + 0.02
Ke = 0.159966
Ke = 15.9966%
Ke = 16.00%
