Answer:
Stock price is $142.13
Explanation:
Given that:
Dividends (D) = $1.74
Dividend grow rate (g) = 25% = 0.25
Required return (R) = 12% = 0.12
Growth rate period (T) = 11 years
Perpetuity (p) = 6% = 0.06
Stock price = [D(1 + g) / (R-g)] {1 -[(1 + g) / (1 + R)]^T}+ [(1 + g)/(1 + R)]^T[D(1 + p)/(R-p)]
Substituting values:
Stock price = [1.74(1 + 0.25) / (0.12-0.25)] {1 -[(1 + 0.25) / (1 + 0.12)]¹¹}+ [(1 + 0.25)/(1 + 0.12)]¹¹[1.74(1 + 0.06)/(0.12 - 0.06)]
Stock price = [(-16.73) × (-2.34)] + [(3.35) ×(30.74)] = 39.1482 + 102.979 = $142.13
Stock price is $142.13
Answer:
0.67; $485,074.67
Explanation:
Given that,
Total sales revenue = $900,000
Variable expenses = $300,000
Total fixed expenses = $325,000
Contribution margin:
= Sales revenue - Variable expenses
= $900,000 - $300,000
= $600,000
Contribution margin ratio:
= Contribution margin ÷ Sales revenue
= $600,000 ÷ $900,000
= 0.67
Break-even point in dollars:
= Total fixed expenses ÷ Contribution margin ratio
= $325,000 ÷ 0.67
= $485,074.6
The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.
Answer:
cost of goods manufactured= $144,000
Explanation:
Giving the following information:
Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 40,000 + 48,000 + 59,000 + 37,000 - 40,000
cost of goods manufactured= $144,000
Answer:
a) Increase demand through TQM initiatives
b) Offer attractive credit terms
c) Seek excellent product designs, high awareness, and high accessibility
e) Seek the lowest price in their target market while maintaining a competitive contribution margin
g) Reduce labor costs through training and recruitment
Explanation:
Chester by pursuing the top five targets listed above would Have a competitive advantage among it's competitors. First their total quality management strategy(TQM) would increase customer satisfaction and spiral their demand growth. Secondly attractive credit terms would increase demand by encouraging customers that require credit facilities for their purchases. Excellent product designs and more awareness would increase product quality while also bring more awareness to the business. Reducing price would also increase demand and since they'd be able to keep a competitive contribution margin they would be able to stay ahead in the market. Lastly reduction in labour costs will have a ripple effect on the whole business as costs will be reduced and cost of goods will be reduced to ensure lower prices and high demand
