Answer:
Value per share today is $13.28
Explanation:
The sustainable growth rate can be calculated using the following formula,
Sustainable growth rate (g) = ROE * (1 - DividendPayout Ratio)
Where,
- ROE is the return on equity
- (1- dividend payout ratio) also known as retention ratio
Thus, g = 0.07 * (1-0.6) = 0.028 or 2.8%
The formula for price or intrinsic value per share is,
P0 or V = D1 / r-g
The earnings per share is Net income per share. Out of this net income, 60% will be paid out as dividends so dividend per share expected for next year is 2.7 * 0.6 = 1.62
Thus, value per share will be,
V = 1.62 / (0.15 - 0.028) = $13.278 rounded off to 13.28
Answer:
$200,000
Explanation:
Given that
Commission = 15% of the sales price
Sales price of the goods = $200,000
So by considering the above information, the revenue should be recognized of $200,000 as it represents the sale price of the goods i.e revenue and the same is to be recorded in the books of accounts
Therefore, the commission percentage is ignored in this case
The most the firm should be willing to pay for installing the system is $444,000.
<h3>What is just-in-time inventory management?</h3>
just-in-time inventory management is an inventory management system and can be defined as the process in which companies have inventory at hand so as to have inventory to fall back to in case the company want to urgently make use of inventory.
Hence, the most the firm should be willing to pay for installing the system is $444,000 since the company want to reduce the level of inventories permanently by $444,000.
Learn more about just-in-time inventory management here:brainly.com/question/8842151
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Answer:
0.78
Explanation:
The computation of the earning per share is given below;
= $965,000 ÷ 1,239,000
= 0.78
The 1,239,000 comes from
= 1,070,000 × 12 ÷ 12 + 85000 × 8 ÷ 12 + 96,000 × 7 ÷ 12 + (1,070,000 + 56,667) × 5%
= 1,070,000 + 56,667 + 56,000 + 56,333
= 1,239,000
Answer:
False
Explanation:
Customer review also called customer feedback form is an input for a company, as this acts as an input for maintaining and meeting the standards of performance.
With the help of customer feedback the organization can ensure the performance, and can work on the weaker sections in the performance, for which users have complaint.
Thus, in the given instance also, the survey information is a form of input.
Thus, the above statement in question is
False