Answer:
a. will be higher than the present value of stock B
Explanation:
Use the formula for dividend discount model (DDM) to calculate the price of each stock;
<u>For Stock A</u>
Price = Div1 /(r-g)
where Div 1 = next year's expected dividend
r = required rate of return
g = dividend growth rate
Price = 4 / (0.10- 0.06)
Price = $100
<u>For Stock B</u>
Price = Div1 /(r-g)
Price = 4 / (0.10 - 0.05)
Price = $80
Therefore, the intrinsic value of stock A will be higher than the present value of stock B
Answer:
Ending RE 153,000
Explanation:
Retained Earning will be calcualte as follows:

We need to solve for the net incoem in order to solve for ending Retained Rearnings (RE)
Net Income: Revenues - Expenses
Service Revenue 280,000
Salaries Expense (62,000)
Depreciation Expense (5,900)
Supplies Expense (14,000)
Insurance Expense (14,600)
Utilities Expense <u> (20,000) </u>
Net Income 163,500
Retained Earnings 11,500
Net Income 163,500
Dividends (22,000)
Ending RE 153,000
Answer:
A.the marketing environment
Explanation:
The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations.
Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. Firms must be well aware of its marketing environment in which it is operating to overcome the negative impact the environment factors are imposing on firm’s marketing activities.
Answer:
a. Value added time = Cutting time + Sewing time
Value added time = 5 minutes + 20 minutes
Value added time = 25 minutes
Non-value added time = Total within batch wait time + Move time
Non-value added time = [25 minutes * (40 - 1) + 2 minutes
Non-value added time = 977 minutes
Total lead time = Value added time + Non-value added time
Total lead time = 25 minutes + 977 minutes
Total lead time = 1,002 minutes
b. Value added ratio = Value added time / Total lead time
Value added ratio = 25 minutes / 1,002 minutes
Value added ratio = 0.02495
Value added ratio = 2.5%