Answer:
$21.37
Explanation:
g = -5.4%
D0 = $3.93
D1 = D0 (1+g)
D1 = 3.93*(1-0.054)
D1 = 3.93*0.946
D1 = 3.71778
Investors require a return (ke) of 12%
P0 = D1/(ke - g)
P0 = 3.71778 / (12% - (-5.4%)
P0 = 3.71778 / (12% + 5.4%)
P0 = 3.71778 / 17.4%
P0 = 3.71778 / 0.174
P0 = 21.3665517
P0 = $21.37
So, the expected price of the stock next year is $21.37.
Answer:
Explanation:
1. Jasper Company
Income Statement
Sales (280000 x $12) $3360000
<u>Less: Cost of goods sold</u>
Add: Direct Material $180000
Add: Direct Labor $505000
Add: Manufacturing Overhead <u>$110000</u>
Cost of goods sold <u>($795000)</u>
Gross Profit $ 2565000
<u>Less: Expenses</u>
Selling expense $437000
Administrative expense <u>$854000</u>
Total expenses <u>($1291000)</u>
Net income <u> $1274000</u>
Percentage of sales for each line item
Sales = 100%
Cost of goods sold: 
x 100= 23.7%
Selling expense : 
x 100 = 13%
Administrative expense: 
x 100 = 25.4 %
2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.
Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.
Answer:
Interest expense $ 11.15
Explanation:
As the bank uses the average daily balance excluding new purchases we should use that amount to solve for the interest expense.
The rate is one and a half percent therefore, 1.5% --> 0.015
principal x rate = interest
$743 x 0.015 = $ 11.145
Answer:
$74,400
Explanation:
Pell Company
Pell's income from Demers for the year ended December 31, 2010
Controlling Interest Share of Net Income for 2010- Excess Fair value Annual Amortization
Controlling Interest Share of Net Income for 2010= ($100,000 × .80) $80,000
Less Excess Fair Value Annual Amortization =($7,000 × .80) $5,600
Pell Income= $74,400
Answer:
Explanation:
Your business plan cover page should include:
Your company logo.
Document title and business name.
Business address and contact information.
Business plan completion date.
Confidentiality statement.
