Answer:
9.75%
Explanation:
EPS = Earning per share = $5
DPS = Dividend per share $1.25
ROI = return on investment = 13%, or 0.13
RR = Retention rate = (EPS - DPS)/EPS = ($5 - $1.25)/$5 = 0.75, or 75%
Growth = RR * ROI = 13% * 75% = 9.75%
Therefore, the expected growth rate for KTI's dividend is closest to 9.75%
Answer: C beyond a certain point, total utility decreases as income rises
- Diminishing marginal utility means that beyond certain point, the total utility from consuming a good decreases, and increasing its consumption monotonically, makes that every additional unit of consumption delivers less utility each time.
- This is because most behavioral consumers models try to emulate the principle of scarcity: the less available units of a good, the more it values.
- Then, an increasing income would allow us to buy more and more goods, and because of the existance of diminishing marginal utility, we would get less utility from consuming additional units of every goods each time.
- As an <u>example</u>,one could think about eating chocolate. The first bar would give us much happiness (utility), but increasing the number of bars consumed would eventually vanish this "happiness".
Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Answer:
7.19
18.39
13,88
10.51%
Explanation:
EAR = (1 + periodic interest rate)^m - 1
m = number of compounding
a. ( 1 + 0.07/4)^4 - 1 = 7.19%
b. (1 + 0.17/12)^12 - 1 = 18.39%
c. (1 + 0.13/365)^365 - 1 = 13.88%
d. EAR =
