Answer: $0.25
Explanation:
Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.
The present value of its growth opportunities (PVGO) will be:
= $50 - ($5.97/12%)
= $50 - ($5.97/0.12)
= $50 - $49.75
= $0.25
Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.
Answer: E. Task identity
Explanation:
Task identity is the degree/extent to which an employee execute an entire, recognizable piece of work
<span>9.20 percent
Re= 0.036 +1.2(0.085) = 0.138
Re= [($1.10 x 1.02)$19] +.02 = 0.0790526
ReAverage = (0.138 + 0.0790526)/2 = 0.108526
WACC = (1/1.65)(0.108526) + (0.65/1.65)(0.098)(1-0.32) = 9.20 percent</span>
Answer:
a.is an estimate of the length of time the receivables have been outstanding.
Explanation:
The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio.
Days sales uncollected = Average Account receivable/Net sales*365
A short collection period means prompt collection and better management of receivables. A longer collection period may negatively affect the short-term debt paying ability of the business in the eyes of management.
