Answer: $1,195,200
Explanation:
Net sales = $1,440,000
Expenses = $504,000
Reductions = $604,800.
We then calculate the initial mark up which will be the addition of the net sales, expenses and the reduction. This will be:
= $1,440,000 + $504,000 + $604,800
= $1,195,200
I don’t understand your question
Answer:
the intrinsic value of the share is 71.03 dollars
That is the amount a rational investor would purchase the share.
Explanation:
there is a negative grow on the dividends thus, lowering the stock price according to the gordon model
d0 =11
d1 = d0 (1 + g)
being g = 4.75% negative:
11 (1 - 0.0475) = 10,4775
Then, we calcualate the ntrinsic value of the share:
Intrinsic value: 71,0338983 = 71.03 dollars
Answer:
C. Inventory
Explanation:
A mixture of debt and equity is the capital structure. The debt is a loan containing long-term debt or bond issuance, while the equity comprises common stock, preferred stock, and retained earnings. The liabilities hand of the balance sheet displays the debt and equity
While the inventory is a current asset that is expressed in the balance sheet asset side. Because this is a current asset that is turned into cash in less than a year.
Answer:
The cost of internal equity is 11.18%
Explanation:
The constant growth model of DDM can be used to calculate the price of a stock if the growth rate in the dividend is expected to remain constant. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for price today under DDM is,
P0 = D0 * (1+g) / r - g
We already know the P0, the D0 and the g. We can plug in these values in the formula to calculate r which is the cost of equity capital.
32 = 1.25 * (1+ 0.07) / (r - 0.07)
32 * (r - 0.07) = 1.3375
32r - 2.24 = 1.3375
32r = 1.3375 + 2.24
r = 3.5775 / 32
r = 0.11179 or 11.179%