Answer:
The required rate of return is 12.2%
Explanation:
Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.
Formula to calculate the price
Price = Dividend / ( Required rate of return - Growth rate )
P = D / ( r - g)
P = $11.54
D = $0.95
g = 4%
Now placing the given values in the formula
$11.54 = $0.95 / ( r - 4% )
r - 4% = $0.95 / $11.54
r - 4% = 8.2%
r = 8.2% + 4%
r = 12.2%
Answer:
Revenue $6,800
Expenses:
- Salaries and Wages Expense ($2,700)
- Supplies Expense ($1,050)
- Depreciation expense ($250)
- Insurance expense ($600)
- Utilities Expense ($400) <u>($5,000)</u>
Net income $1,800
1) you must add insurance expense
2) you must decrease supplies expense = $1,200 - $150 = $1,050
3) you must add depreciation expense
4) you must increase salaries and wages expense = $2,300 + $400 = $2,700
5) you must increase revenue = $6,100 + $700 = $6,800
Examples of organizational process assets include policies and procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information.
Answer:
External finance needed = $2,088
Explanation:
Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.
From the Proforma Balance Sheet in the attached excel file, we have:
Total Assets = $12,610
Total Liabilities = $10,448
Therefore, we have:
External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088
