Answer:
$26.05
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid = d0 x (1 + growth rate)
d0 = dividend that was just paid
r = cost of equity
g = growth rate
1.5 x (1.045^6) / 12 - 4.5 = $26.05
Answer: Please refer to Explanation
Explanation:
Advise I would give.
1. The process for the collection of cash should be changed to bring in revenue faster. This can be done in a variety of ways,.
- By including in the terms of the contract that the service has to be paid for within a certain period such as a maximum of 4 weeks and then follow up each week on the customer so that they remember that they have a due bill.
- Giving payment based discounts such as a 5% discount if the service is paid for within a fortnight.
- Telling the customer to pay first, if not the full amount, at least a down payment with the total being settled at a later date.
These are but just some ways of getting the money faster but the bottomline is that payment needs to be received faster because the nurses are paid on a weekly basis.
2. Focus more on Patients with Insurance.
The company has a very low clientele base that use insurance and they should aim to increase that figure. This is because Insurance pays out timely and IHHPC will be sure that their payment will come because an Insurance company is bound by certain rules and regulations. For security of payments therefore, they should increase their insurance based clientele.
Answer:
e, e ,i, i, i, e is the order from top to bottom
Answer:
Compute the accounts receivable turnover for 2018.
4.29 times
Compute the inventory turnover for 2018
3.6 times
Compute the net margin for 2017.
24.58%
Explanation:
Compute the accounts receivable turnover for 2018.
accounts receivable turnover = Sales / Accounts receivable
= $ 2,400,000 / $ 560,000
= 4.29 times
Compute the inventory turnover for 2018
Inventory turnover = cost of Sales / inventory
= $1,800,000 / $ 500,000
= 3.6 times
Compute the net margin for 2017.
net margin = Net Profit / Sales × 100
= (2,400,000-1,810,000) / 2,400,000 × 100
= 24.58%
Answer: It should shot down immediately.
Explanation:
If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.
