Answer:
(A) 6%
(B) 20
Explanation:
The market capitalization rate for Admiral motors is 8%
= 8/100
= 0.08
The expected ROE is 10%
= 10/100
= 0.1
The expected EPS is $5
The Plowback ratio is 60%
= 60/100
= 0.6
(A) The growth rate can be calculated as follows
= Plowback ratio × ROE
= 0.6 × 0.1
= 0.06×100
= 6%
Hence the growth rate is 6%
(B) The P/E ratio can be calculated as follows
= 1-0.6/0.08-0.06
= 0.4/0.02
= 20
Hence the P/E ratio is 20
Answer:
Total bet amount= -$2
Explanation:
In a card deck of 52 cards we have 13 diamond cards. Cards are drawn without replacement.
Probability of the first card being diamond = 13/52
Probability of the send card being diamond= 12/51
So the probability for both cards being diamond = (13/52)*(12/51)= 0.0588235
Bet amount for 2 diamonds= probability* amount received
Bet amount for 2 diamonds= 0.0588235* $30= $1.765
Probability of no diamond= 1- 0.0588235
Probability of no diamond= 0.94118
Bet amount for no diamonds= 0.94118* (-$4)
Bet amount for no diamonds= -$3.765
Total bet amount= Bet amount for diamonds + bet amount for no diamonds
Total bet amount= $1.765+ (-$3.765)
Total bet amount= -$2
Answer:
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
Dr Investment in Nursery supplies $7 million
Cr Investment Revenue $7 million
Dr Cash $9 million
Cr Investment in Nursery supplies $9 million
No Entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
(To record purchase of 25% shares for $66 million)
Dr Investment in Nursery supplies ($28 million x 25%) $7 million
Cr Investment Revenue $7 million
(To record investor share of investee's net income)
Dr Cash (18 million shares x 25% share x $2 per share) $9 million
Cr Investment in Nursery supplies $9 million
(To record receipt of dividend)
No Entry
Answer:
1. Technology.
2. Social trends.
3. Economic shocks.
4. Political.
5. Nature of the workforce.
Explanation:
According to the amiable philosopher and mathematician, Alfred North Whitehead, "The art of progress is to preserve order amid change and to preserve change amid order."
The 5 specific forces acting as stimulant for change in an organization or business environment are;
1. Technology: it is a major external force, organizations should make use of new technologies, so as to maximize efficiency and increase productivity.
2. Social trends: social media changes can bring individuals together and influence their interests to share opinions, cultures perception and ideas.
3. Economic shocks: indices of gross domestic products such as unemployment, acquisitions, bankruptcy, recession impacts an organization.
4. Political: government policies, regulations and restrictions such as tax, minimum wage etc can cause a change in a firm. Companies should ensure they are operating at top notch in the competitive market.
5. Nature of the workforce: they should be able to adapt or respond to economic activities, such as demographic, immigration, multicultural society, etc.
Change agents in an organization are individuals acting as catalysts by assuming responsibilities for managing any of the aforementioned specific forces acting as stimulant for change.
