Answer:
Correct answer is (a) customers are making payments quickly
Explanation:
Accounts receivable turnover analysis is used to determine if a company is experiencing problem collecting the sales make on credit from the customers. A high receivables turnover ratio can indicate that a company's collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly
Answer:
$24.35
Explanation:
Current dividend; D0 = 2
Next, find the price of each dividend at 13% required rate of return;
PV of Yr1 cashflow ; D1 = 2/(1.13) = 1.7699
PV of Yr2 cashflow ; D2 = 2/ 1.13² = 1.5663
PV of Yr3 cashflow ; D3 = 2/ 1.13³ = 1.3861
PV of Yr4 cashflow ; D4 + P4 = 2 + 30 = 32/ (1.13^4) = 19.6262
Next, sum up the Present values;
= 1.7699 + 1.5663 + 1.3861 + 19.6262
= 24.3485
Therefore, you should buy the stock at $24.35
Answer:
The answer is $475.
Explanation:
We have the writer of the put contract has the obligation to buy the share at $50 ( as the put is the at-the-money put) in 3 months time. The writer of the put also has received the premium at $650 for assuming the obligation to buy at the predetermined price.
Thus, the expected returns is calculated as below:
-[0.60 x 100 x Max[$0,$50 - ($50)(1.1)] + 0.30 x 100 x Max[$0,$50 - ($50)(0.95)] + 0.10 x 100 x Max[$0,$50 - ($50) (0.80)] + $650 = - [0.6 x 100 x 0 + 100 x 0.3 x 2.5 + 0.1 x 100 x 10] + 650 = $475.
Answer: Sales commissions, promotional budget, and product development costs
Explanation:
Hi, the variable costs are Sales commissions, promotional budget, and product development costs, because they depend on the number of sales, or the production. These costs will increase or decrease depending on the sales and production volume.
Office rent and office sales are invariable costs, it doesn’t matter the amount of sales or the production, they don't increase of decrease because of it. They remain the same (fixed costs).
Feel free to ask for more if needed or if you did not understand something.