Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value =
=
= 29.69 ≈ $29.70
Answer:
net income is 2.7 million
Explanation:
given data
beginning of year decrease = $1.5 million
dividend = $4.2 million
to find out
net income
solution
we know that here relation that is
net income + Beginning retained earning - dividend = Ending retained earning
so here Beginning retained earning - Ending retained earning = $1.5 million
so
Beginning retained earning - Ending retained earning = dividend - net income
put here value so net income will be
1.5 = 4.2 - net income
net income = 4.2 - 1.5 = 2.7
net income is 2.7 million
Answer:
Explanation:
Rate per period =15% = 15/12 monthly
Payment(PMT)=$1,000
Future amaount(FV)=$2,000,000
N(years)=?
If input this data into fin calculator, n= 262.27months=262.27/12years=21.86years
In a payback analysis, the <u>Cumulative Time-Adjusted Benefits</u> values are the running sums of the time-adjusted benefits over all the years.
The Payback length suggests how long it takes for a business to recoup an investment. This form of evaluation allows firms to examine opportunity investment opportunities and determine on an assignment that returns its investment in the shortest time if that criteria is vital to them.
Payback evaluation is a mathematical technique to determine the payback duration for an investment. The payback duration is how long it'll take to pay off the funding with the cash glide derived from the asset or undertaking. In colloquial phrases, it calculates the 'destroy-even point.
The payback length is favored whilst a corporation is under liquidity constraints because it may display how lengthy it ought to take to recover the money laid out for the task. If quick-term coin flows are a problem, a brief payback length may be greater attractive than an extended-time period funding that has a better NPV.
Learn more about payback analysis here brainly.com/question/13391889
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Answer:
$36 per purchase order; $20 per square foot
Explanation:
Factory expected cost:
= Cleaning factory + Providing utilities
= $35,000 + $77,000
= $112,000
Purchasing:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $ 183,600 ÷ 5,100
= $36 per purchase order
Factory:
Activity overhead rate:
= Expected costs ÷ Expected amount of cost driver
= $112,000 ÷ 5,600
= $20 per square foot