Answer:
Austin Grocers
1. Projected 2017 Net Income
= $102 million
2. Expected Growth Rate in Dividends
= 6.25% (2/32 x 100)
Explanation:
a) Income statement (in millions of dollars):
2016 2017
$'millions $'millions
Sales $700 $840
Operating costs
including depreciation 500 630
EBIT $200 $210
Interest 40 40
EBT $160 $170
Taxes (40%) 64 68
Net income $96 $102
Dividends $32 $34
Addition to
retained earnings $64 $68
b) Sales for 2017 = $840 million ($700 x 1.2)
c) Operating costs for 2017 = $630 million ($840 x75%)
d) Taxes for 2017 = $68million ($170 x 40%)
e) Dividend payout ratio = Dividend/Net Income = 33.33%
f) Growth Rate in Dividends = Dividend Increase/Previous year's dividend x 100 = 6.25% (2/32 x 100)
Answer:
Interest Expense $6,446,360
Interest Payable $7,000,000
Explanation:
Interest Expense for the year =
Issued amount * Effective interest rate * 
$644,636,000 * 0.06 * 2/12 = $6,446,360
Interest Payable =
Face Value of the bond * Interest rate *
$600,000,000 * 0.07 * 2/12 = 7,000,000
Answer: $47,000 to $117,000 per year
Explanation: An ocean engineer at a fresher level can earn $47k and with the experience of 10 years in the filed, the salary of an individual can lead up to $117k in a year.
The profession of ocean is considered to be one of the highest paid branch of engineering, with most recruiters belonging to extraction industry. The median salary of an ocean engineer, as per the latest data is $70,285.
False. The stock market is essential to the economy. The Great Depression is a prime example.
Answer:
The number of units that must be sold is A. 6,540 units
Explanation:
The number of units must be sold to meet the target profit figure are calculated by using following formula:
The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.
Contribution margin per unit = Sales price per unit – Variable cost per unit = $154 - $99 = $55
The number of units must be sold = ($313,500 + $46,200)/$55 = 6,540 units
