Answer:
Stock's current market value = $44.87
Explanation:
We can solve this stock valuation problem using DDM (Dividend Discount Model).
Lets find the dividends for the years:
D0 = $1.32
D1 = $1.32*1.3 = $1.716
D2 = $1.716*1.1 = $1.888
D3 = $1.888*1.05 = $1.982
The formula of stock valuation:
Lets calculate the terminal value after Year 3 afterwards:
<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05
Now,
The present value of the stocks is gotten using formula:
So, we have:
Stock's current market value = $44.87
Answer:
b. price and quality.
Explanation:
Most attributes and benefits in many product categories can be whittled down to price and quality.
This ultimately implies that, the two fundamental factors to consider when designing a product is its price and quality. The price of a product can be defined as the monetary value or amount of money which must be paid by a customer for the acquisition of such products. The relationship between demand and supply of goods (products) affects or influences the price of a product; if the supply of a product is short, its price would rise and vice-versa.
The quality of a product is subjective, it is a measure of excellence and being free from any defect or deficiency when producing and supplying products that meet the needs or demands of customers.
Customer service is giving assistance to customers on how to best use the product, trouble-shooting any issues, and ensuring they had a great buying experience. Customer care means how well customers are taken care of while they interact with the brand.
Answer:
The amounts of pretax and after-tax income can the company expect to earn from these predicted changes are $1,795,000 and $1,436,000 respectively.
Explanation:
The sales less the variable cost gives the contribution margin.
The contribution margin less the fixed cost gives the net operating income. Furthermore, net income is the difference between the total sales and the total costs (fixed and variable).
Both sales and variable cost are dependent on the number of units sold.
with these expected changes,
Pretax Income
= 40,500($205 - $145) - $635,000
= $1,795,000
After tax income
= 80% * $1,795,000
= $1,436,000
Answer:
$22.2 billion
Explanation:
Calculation to determine How much would they report as LIFO cost of goods sold
Cost of goods sold=$22 billion + ($0.8 billion $0.6 billion)
Cost of goods sold=$22 billion + $0.2 billion
Cost of goods sold= $22.2 billion
Therefore How much would they report as LIFO cost of goods sold would be $22.2 billion
