Answer:
The rate of growth of their dividend is 6.30%.
Explanation:
This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.
MV = D(1+G%)/ke
39.86 = 1.2 (1+G%)/(9.5%-G%)
G = 6.30%
Writes in their own language as used colloquially.
Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
Answer:
The price o the machine is = $268,157.69
Explanation:
<em>The Net present value is the difference between the present value (PV) cash inflows and the initial cost of the investment.</em>
<em>PV of cash inflow =</em>
90,000× (1- (1.1)^(-7) )/0.1
= 438,157.69
NPV = PV of cash inflow - cost of the machine
<em>Let represent cost of the machine as " y "</em>
170,000 = 438,157.69 - y
y = 438,157.69- 170,000
y = 268,157.69
The price o the machine is = $268,157.69
I think it’s b it is the most right played out
