Answer:
Required return= 28.87%
Dividend yield= 24.4658%
Capital gains yield= 4.4%
Explanation:
Required return=(D1/Current price)+Growth rate
=(3.93*1.044)/16.77+0.044
=28.8658%(or 0.2887 approx)
Dividend yield=Dividend for next period/Current price
=(3.93*1.044)/16.77
=24.4658%(or 0.2447 approx)
Capital gains yield=Growth Rate
=4.4%(or 0.044)
Answer: elastic
Explanation:
The price elasticity of supply will be:
The percentage change in price will be:
= (1.50 - 0.50)/0.50 x 100
= 1.00/0.50 × 100
= 200
The percentage change in quantity will be:
= (4 -2)/2 x 100
= 2/2 × 100
= 100
Elasticity = % change in quantity/% Change in Price = 200/100 = 2
Since elasticity = 2, this indicates supply is elastic as it's greater than 1.
Answer:
The correct answer is d) It was deducted as an expense on the income statement, but does not require cash.
Explanation:
The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.
It depends on the account if it is added or subtracted to net income. Depreciation is added to net income because it was deducted as an expense on the income statement, but does not require cash.
Answer:
D) It decreases about 16 units.
Explanation:
Currently Keene's break even point in units = total fixed costs / contribution margin
total fixed costs = $5,600
contribution margin = selling price - contribution margin = $20 - $6 = $14
Keene's current break even point = $5,600 / $14 = 400 units
If Keene's variable costs decrease by 10%, the new contribution margin will be = $20 - $5.40 = $14.60
Keene's new break even point = $5,600 / $14.60 = 383.56 ≈ 384 units
this represents a 4% decrease (16 units less)
