Answer:
End of the contract year.
Explanation:
Calendar year deductibles (and refunds) operate on a regular calendar year basis, starting on January 1st and ending on December 31st. Generally refunds should be made during January and February of the next year.
If the policy works on a plan year basis, both the deductibles and the refunds will be based on the renewal date of the policy, and not the calendar year basis.
Answer:
(E) that prices of gasoline and heating oil will stay higher than usual through
Explanation:
Answer:
-$155,000
Explanation:
The quantity of inventory that would be reduced= -105000
The decrease in parts inventory = 10000
Decrease from year 1 to 6 = -10000*6
= -60000
Then the net working capital
= 105000 + 10000 - 60000
= $155000
Therefore the net working capital for this project in the sixth year is = -$155000
Answer:
Return on equity(r) = 0.16
Plowback ratio(b) = 50 = 0.5
Earnings per share(EPS) = $2
D1 = 50% x $2 = $1
Cost of equity(Ke) = 0.12
Growth rate(g) = b x r
= 0.5 x 0.16
= 0.08 = 8%
Current market price(Po) = D1/Po + g
= $1/0.12 - 0.08
= $25
Market price in 3 years = Po(1+g)n
= $25(1+0.08)3
= $25(1.08)3
= $31.49
Explanation:
In this case, we need to calculate growth rate by multiplying the plowback ratio by return on equity. Then, we will calculate the current market price as shown above. Thereafter, we will subject the current market price to a 3-year growth rate to calculate the market price in 3 year's time
