Answer:
Initial Invest= 630,000
Cash Flow 1=228,000/1.12= 203,571
Cash flow 2= 228,000/1.12^2=181,760
Cash Flow 3= (228,000+29000+73000)/1.12^3=234,887
=620,218
NPV= 620,218-630,000= -9,781
Explanation:
P/E choice decrease
When companies buy rear their own stock, it decreases the numbers of claims outstanding. Earnings per share are computed as net income divided by number of shares great. If the number of shares outstanding declines while net revenue stays the same, EPS will increase. If EPS increases while the stock price stays the identical, the price/earnings ratio (P/E) will fall.
<h3>What are stock earnings?</h3>
Earnings refer to a company's earnings in a given quarter or fiscal year. Earnings are a key figure used to select a stock's value. A company's profits are used in many standard ratios. Payments have a big influence on stock price, and as a consequence, the numbers are subject to potential manipulation.
To learn more about Earning, refer
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Answer:
This question has a missing information. I have found the complete version and pasted it down below;
"Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The investment requires a single payment of <em>$1,500 today</em>. The return on the investment is % A. 4.195 B. 4.729 C. 5.361 D. 5.922 E. 6.961 "
Explanation:
This question requires you to find that discount rate given a single future cashflow. $2,000 is expected 5 years from today, hence the future value. $1,500 payment today is the dollar value today, hence the Present value.
Using a financial calculator, you will key in the following inputs;
Total duration; N = 5
Present value; PV = -1,500 (it's a cash outflow hence negative)
Recurring payment; PMT = 0
Future value; FV = 2,000
then find the rate by keying in CPT I/Y = 5.922%
Therefore, the return on the investment is 5.92%
Answer:
Explanation:
A. Profit margin*Total asset turnover=Return on assets(investment)
0.07*TAT=25.2
TAT=360
B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%
C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%
Answer:
C. Build up inventories before reducing production.
Explanation:
Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." We need to build up inventories before reducing production.
