Answer:
Anna
Explanation:
Overall the best model is the one which can best predict and forecast. Overall, the two students are trying to predict the prices of gasoline. Anna's model predicts correctly 75% of the time, and Maria's model can predict 55% of the time. According to the track record, Anna is likely to get higher grades because she has a better prediction record.
Answer:
a) Growth rate of earnings
using the sustainable growth rate formula which is the maximum growth rate that a company can sustain without external financing:
Growth rate = ROE * (1 - retention rate)
= 15% * (1 - 40%)
= 15% * 60%
= 9%
(Retention rate = 2/5 * 100 = 40%)
b) Price of equity using dividend growth model:
P₀ = D₀ (1 + g) / (re – g)
D₀ = the current dividend (whether just paid or just about to be paid) = $3
g = the expected dividend future growth rate = from A above (9%)
re = the cost of equity = 12%
= 3 (1 + 0.09) / (0.12 - 0.09)
= $109
c) Price of equity
P₀ = D₀ (1 + g) / (re – g)
= 4 (1 + 0.09) / (0.12 - 0.09)
= $145.33
Explanation:
At the estimated growth rate of 9%, should DFB increase the dividend payout, the price of equity would amount to $145.33 which is higher than the previous price of $109, so DFB is advised to raise its dividend
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
ANSWER:
perceived risk
STEP-BY-STEP EXPLANATION:
Perceived risk is the vulnerability a purchaser has when purchasing things, for the most part those that are especially costly, for instance, vehicles, houses, and PCs. Each time a purchaser thinks about purchasing an item, the individual in question has certain questions about the item, particularly if the item being referred to is profoundly evaluated
Perceived risk can incorporate the dread or potentially question a purchaser has that the item they are purchasing will neglect to play out its expected capacity. The buyer may be worried about the possibility that that on the off chance that they purchase a vehicle, the motor or different parts may glitch.
Answer:
a. Ending Cash Balance:
January = 50,000
February = 61,555
March = 50,000
b. Loan Balance End of Month:
January = 44,500
February = $0
March = $44,445
Explanation:
Note: The merged data given in the question are sorted before answering the question as follows:
Cash Receipts Cash payments
January $ 518,000 $ 461,500
February 403,000 346,500
March 467,000 523,000
Explanation of the answer is now given as follows:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash balance - Minimum required cash balance = $105,500 - $50,000 = $55,500
March Additional loan = Minimum required cash balance - March Preliminary cash balance = $50,000 - $5,555 = $44,445
From the attached excel file, we have:
a. Ending Cash Balance:
January = 50,000
February = 61,555
March = 50,000
b. Loan Balance End of Month:
January = 44,500
February = $0
March = $44,445
