Answer:
C. $4.92 billion
Explanation:
Acquisition cost refers to the cost a company pays for assets such as shares or fixed assets like machinery. In this case, the company paid $60 * 82 million, being $4.92 Billion.
<u>Explanation:</u>
Target market should have appropriate age, gender, lifestyle, likes, preferences, income level, education level, maturity level, marital status, occupation and ethnicity. It can also be shortly termed as appropriate demographics.
Target market is the audience to whom the product is to be sold. In order to pitch the right product to right customer target market has to be identified. Customer profiling is necessary to identify the customers interested in the products or services marketed by an organisation.
Customer base gives the details of what is needed by the customers. Organisation is benefited by only concentrating on the customers who are interested in their products or service.
Answer: $42
Explanation:
Value can be found using the Gordon Growth model;
= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)
Growth rate = Retention ratio * Return on equity
= 40% * 30%
= 12%
Value = (1.50 * 1.12)/ ( 16% - 12%)
= $42
<u>Solution and Explanation:</u>
The following formulas will be used in order to calculate the accounts receivable turnover ratio and in order to find out the number of days collect.
Accounts receivable turnover ratio = Net sales divided by Average net Accounts receivable
![=\$ 50,370 /[(\$ 7,250+\$ 5,720) / 2]](https://tex.z-dn.net/?f=%3D%5C%24%2050%2C370%20%2F%5B%28%5C%24%207%2C250%2B%5C%24%205%2C720%29%20%2F%202%5D)
= 7.77 times
<u>Days to collect</u> = 365 divided by Accounts receivable turnover ratio
= $365 divided by 7.77
= 47 days
<u>Note</u>: The number of days that has been assumed is 365 days
Answer:
9.69%
Explanation:
Given the following :
Net income = $4819
Total asset = $38,200
Taxable income = $6,100
Dividend payout ratio = 30% = 0.3
The internal growth rate is calculated thus ;
(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]
Return on asset = (Net income / total asset)
Return on asset = ($4,819 / $38,200)
Return on asset = 0.12615
Retention ratio = 1 - Dividend payout ratio
Retention ratio = 1 - 0.3 = 0.7
Hence internal growth rate :
(0.12615 × 0.7) / 1 - (0.12615 × 0.7)
0.088305 / 1 - 0.088305
0.088305 / 0.911695
= 0.0968580
= 0.0968580 × 100%
= 9.685%
= 9.69% ( 2 decimal places)
