Answer:
P0 = $33.25558633 rounded off to $33.26
Explanation:
The stock price today or the price per share today can be calculated using the discounted cash flow approach or the dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock. In the given scenario, the price of the stock will be calculated as follows,
P0 = D1 / (1+r) + D2 / (1+r)^2 + .... + Dn / (1+r)^n +
[ (Dn * (1+G) / (r - G)) / (1+r)^n }
Where,
- D1, D2 and so on will be calculated by applying the appropriate growth rates to D0 of $1.85
- r is the required rate of return
- G is the sustainable or constant growth rate
P0 = 1.85 * (1+0.24) / (1+0.14) + 1.85 * (1+0.24) * (1+0.18) / (1+0.14)^2 +
1.85 * (1+0.24) * (1+0.18) * (1+0.12) / (1+0.14)^3 +
[ (1.85 * (1+0.24) * (1+0.18) * (1+0.12) * (1+0.06) / (0.14 - 0.06)) / (1+0.14)^3 ]
P0 = $33.25558633 rounded off to $33.26
Answer: $38,097.50
Explanation:
Mandy Feng has to pay Johnson $35,000 for the year as well as various taxes. Adding all of these up is the total cost of hiring Johnson to Mandy Feng.
Calculating therefore we have,
= Salary + Social Security Taxes + Medicare Taxes + SUTA Tax + FUTA Tax
Remember, it is stated that FUTA and SUTA are applicable to only the first $7,000 of Johnson's pay.
= 35,000 + (6.2% * 35,000) + (1.45% * 35,000) + ( 5.4% * 7,000) + ( 0.6% * 7,000)
= 35,000 + 2,170 + 507.50 + 378 + $42
= $38,097.50
The total cost to Feng of employing Johnson for the year is $38,097.50
Answer:
$819.98
Explanation:
After making downpayment, the remaining amount is $145,000 - 15000 = $130,000
Using financial calculator:
PV = 130,000
n = 30 years = 360 months
i/r = 6.5%/year = 0.54% / month
FV = 0
PMT = ? (Monthly payment = ?)
--> Monthly payment = $819.98
Answer:
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Explanation:
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.
Answer:
Screening
Explanation:
Screening is a process in product development that evaluates and compares ideas that are put together for a business.
Simply put, screening is the checking and analyzing of ideas about a new product to ensure that the best idea is utilized to ensure profit.
Screening is done because every idea suggested cannot be good enough or useful for an organization and as such have to be trimmed off or trashed entirely to enable one use the best approach from other ideas.
I hope this helps.
