Answer:
The expected share price=$20.07
Explanation:
Step 1: Calculate the price/earnings to growth ratio(PEG) ;
PEG ratio=(Price/EPS)/EPS growth
where;
Price=Price per share
EPS=earnings per share=share price
EPS growth=share price growth
In our case;
Price per share=$4.22
Share price=$48.83
Share price growth rate=3.1%=
Replacing;
PEG ratio=(4.22/48.83)/3.1
PEG ratio=0.0279
Step 2: Calculate share price
PEG ratio=(Price per share/share price)/share price growth
where;
PEG ratio=0.0279
Price per share=$2.63
Share price=x
share price growth rate=4.7%
Replacing;
0.0279=(2.63/x)/4.7=2.63/4.7 x
4.7 x×0.0279=2.63
x=2.63/(4.7×0.0279)
x=20.07
The expected share price=$20.07
Answer:
$ 1733
Explanation:
Cost Marginal Investment in Accounts Receivable = Marginal Investment in Accounts Receivable * firm's required return on investment
Marginal Investment in Accounts Receivable = Average Investments Under proposed Plan - Average Investments Under present Plans
Average Investments in Accounts Receivable = Total variable cost of annual sales / Turn over of account receivables
Turn Over of account receivables = 360/ average collection period.
Using above formula for calculation , Answer = $ 8665 * 20% = $ 1733
Marilyn shall experience the critical problem in covering the operational cost for running the business if she is unable to find the way to meet customers' demand for quality
Explanation:
Retail business management needs to execute market research and should able to compare its nature of service with other retail services of the same business. As the Operations Manager, Marilyn should be able to capture the present pulse of the customers' needs which in turn increases the demand of the customers.
Absorbing the new market trend and fashion related to the profession of salon techniques, Marilyn should provide training to the staff in an upscale urban neighborhood. It will fetch the positive effects of fetching good results in attracting more demanded customers.
Answer:
Three reason why GM build cars in China:
China has lower labor costs. This is the main reason, a Chinese worker earns a lot less than an American worker, and this results in a substantial cost reduction for GM.
China has important economies of scale. The United States also has important economies of scale, but China may have the edge in some economic sectors.
Finally, the third reason is that China has very good infrastructure like trains, roads, and ports, and this facilitates the logistics for GM.
If the president wants GM to move production back in the US, GM could demand better infrastructure (labor costs cannot be lowered, and the economies of scale are already there), and perhaps other complementary incentives like corporate tax reductions, or even subsidies.
Answer: option (B). Eurocurrencies
Explanation: Euro currency is currency deposited by nationals governments or corporations, outside of its home market. Eurocurrency is a currency commonly held in banks located outside of the country which issues the currency. Moreover is is pertinent to note that the term Eurocurrency applies to any currency and to banks in any country. Having Euro doesn’t mean the transaction has to involve European countries.
Eurocurrency is when an institution uses money from another country, but not in the originating country’s home market, and despite the name, Eurocurrency can involve any currency. For example Nigeria Naira deposited at a bank in United state is Eurocurrency.
