Answer:
9.94%(Approx).
Explanation:
Retention ratio=1- payout ratio
=1-0.32
=0.68
Sustainable growth rate=(ROE*Retention ratio)/[1-(ROE*Retention ratio)]
=(0.133*0.68)/[1-(0.133*0.68)]
=0.09044/0.90956
=9.94%(Approx).
Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
Answer: Option c
Explanation: In simple words, the capital asset pricing model (CAPM) is a model used to determine an asset's hypothetically suitable necessary return rate to decide to attach assets to a diversified portfolio.
The equation takes into consideration the exposure of the asset to non-verifiable uncertainty , also expressed by the quantity beta (β) in the financial industry, as well as the expected market return and the expected return of a risk-free hypothetical asset.
Hence from the above we can conclude that the correct option is .
Answer:
b. $22.75
Explanation:
We know that
Contribution margin per unit= Sales price per unit - variable cost per unit
Since the selling price is $35
And, the contribution margin is 35%
Therefore, the contribution margin per unit would be
= $35 × 35 per cent
= $12.25
Now add these figures in the formula above.
Hence, the value would be equal to
= $35 - $12.25
= $22.75
The inventory and labor costs are included in the variable cost
Answer:
$500,000
Explanation:
The Federal insurance corporation pays a sum of $250,000 to depositor in an insured bank for every category of qualified account owners. Deposits in different banks (but not branches ) are treated different by FDIC for the purpose of insurance.
In a joint deposit account , the federal deposit insurance corporation pays each of the spouse a sum of $250,000 each over the aggregate deposit in the account. All separate accounts owned by the person in a the same banks are merged together.
