Answer:
31.12
Explanation:
Given that,
Growing at a constant rate = 6.5%
Firm’s last dividend, R = 3.36
Required rate of return = 18%
Expected dividend next year = 3.36 × (1 + 6.5%)
= 3.5784
Market value of stock:
= Expected dividend next year ÷ ( required return - growth rate)
= 3.5784 ÷ (0.18-0.065)
= 31.11652
= 31.12
Answer:
It reveals that the owner is completely aware about financial risk and wants to take precautions to ensure the success of his company.
D Reflect upon the feedback and mofify his approach so its more effective.
Answer:
C. Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.
Explanation:
Mark has absolute advantage in both as it can outproduce Krystal in both, ppoems and TB commercials
now, referring to comparative advantage:
Mark opportunity cost for TV comm: 12/4 = 3
Krystal opportunity cost for TV comm: 8/2 = 4
It has comparative advantage doing TV comm as it renounce to less poems
Mark opportunity cost for poems: 4/12 = 1/3
Krystal opportunity cost for poems: 2/8 = 1/4
Krystal has a comparative advantajge as it renounce to a quarter of TB commercial per poem while Mark to a third
Answer:
B). 365 days by the accounts receivable turnover.
Explanation:
This is said to be the time it takes for a business to receive money owed by its client in its amount receivable(AR).
The average collection period formula is the number of days in a period divided by the receivables turnover ratio. The numerator of the average collection period formula shown at the top of the page is 365 days. For many situations, an annual review of the average collection period is considered.
