After-tax net income divided by the average amount invested in a project is the accounting rate of return.
Net Income After Tax (NIAT) is a financial term used to describe a company's profit after all taxes have been paid. Net income after tax represents profit or profit after deducting all expenses from income. Net income is calculated by subtracting all expenses from income.
Net income is usually synonymous with profit as it is the ultimate measure of a company's profitability. Net income is also called net income because it represents the net profit that remains after all expenses and expenses are deducted from the income.
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Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
Answer:
12,184,700
Explanation:
The gross billing for merchandise old on cullumber company last year was 12,720,000
The sales return and allowance is 360,000
The sales discount is 175,300
Therefore the net sales for last year can be calculated as follows
= 12,720,000-360,000-175,300
= 12,184,700
Hence the net sales last year for cullumber company is $12,184,700
Answer: (B) business-to-business
Explanation:
Business to business selling is the process in which a one business selling its products and the services to the another business instead selling the products to the customers.
It basically create some value for the business and it is one of thee most complex selling business as compare to the B2C (Business to consumer).
B2B (Business-to-business) is one of the best technique and practice where the company selling the products to another business company such as wholesaler and office supplier.
Therefore, Option (B) is correct.
