Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
<u>Particulars YRC UNP CH
</u>
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
Answer:
Competition and consumer trends
Explanation:
The Hays company makes a variety of products including sodas like cola, diet-cola, orange soda. Initially it had less competition, but more companies have entered the market.
Due to increased competition the Hays company will need to develop strategies to gain competitive advantage and by extension market in the more competitive market.
Also consumer trends is nowoving towards speciality sodas. The company will need to reduce the variety of sodas they produce and specialise in the product the consumers prefer.
Answer:
S.S.S. should not purchase the shopping center because its NPV is negative, i.e. -$1,952,890.30
Explanation:
Note: See the attached file to see how the net present value is calculated.
From the file, it can seen that the project will result in a negative NPV of $1,952,890.30. Therefore, S.S.S. should not purchase the Shopping center.
Answer:
$30,870
Explanation:
Sales per unit: 67,200/3,200 = 21
variable expenses per unit : 38,976/3200 = 12.18
.......................
Sales 3500 unit: 21*3500 = 73,500
Variable expenses 3500 units : 12.18*3500 = 42,630
Contribution margin = Sales-Variable expenses = 73,500-42,630
=$30,870
