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3 years ago

If net sales for the current year were $612,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)

Business

1 answer:

Aneli [31]3 years ago

7 0

Answer:

42 days.

Explanation

Note: The full question is attached as picture below

Account receivable turnover ratio = $612,000 / $70,422

Account receivable turnover ratio = 8.69

Account collection period = 365 / 8.69

Account collection period = 42.00230.

Thus, the firm’s sales uncollected for year is 42 days.

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The intrinsic value of company's share is $89.90

The share price is expected to rise in the incoming years

The intrinsic value of share remains the same when payout ratio reduces to 20%

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The growth rate of the company, which is also the growth rate for earnings per share in each of the first 5 years

Growth rate in the first 5 years=ROE*reinvestment rate

ROE=20%

reinvestment rate=100%(all earnings would be reinvested)

Growth rate in the first 5 years=100%*20%

Growth rate in the first 5 years=20%

Earnings in 5 years=current EPS*(1+growth rate)^5

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Earnings in year 6=$24.8832*(1+9%)

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Out of the EPS, 40% would be paid as dividends

dividends in year 6=$27.122688*40%

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share price in year 5=$10.8490752/(15%-9%)

share price in year 5=$180.81792

share price now=$180.81792/(1+15%)^5

share price now=$89.90

The fact that share price and the intrinsic value are the same implies that share price would increase over the next year and the year after because the dividends would continue to growth at a constant rate of 9%

Out of the EPS, 20% would be paid as dividends

dividends in year 6=$27.122688*20%

dividends in year 6=$5.4245376

growth rate=15%*(1-20%)=12.00%

We can compute the share price at the end of year using the present value formula of perpetuity

share price in year 5=$5.4245376/(15%-12%)

share price in year 5=$180.81792

share price now=$180.81792/(1+15%)^5

share price now=$89.90

The share price in payout ratio from 40% to 20% has no effect on the intrinsic value since the share prices are the same under the two scenarios

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To allow lower-level employees access to the corporate network while preventing them from accessing private human resources docu

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When a group gives some of its

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Answer:

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Firms use economic analyses to better understand the overall outlook for the economy and how economic changes will impact the fi

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Answer:

True.

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It is a true statement.

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Further, to remain in industry ( or for stable growth ), the firm have to synchronize their activities with the environment.

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