Answer: a) Fuel Connector's place of business.
Explanation:
Since Go-Flo is expected to pick up the goods from Fuel Connector Products, Inc., therefore, Go-Flo should pick up the the hose couplings and fittings from Fuel Connector's office. Also, since the contract does not specify a place so its only logical that Go-Flo would have to go to Fuel Connector's place of business.
Answer:
Based on the CAPM approach, the cost of common from reinvested earnings is e. 10.93%
Explanation:
Hi, first, let´s introduce the formula for the CAPM approach.

Therefore:

So, the cost od common from reinvested earnings is 10.93%, which would be option "e".
Best of luck.
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
Answer:
Ted's net cash flow is zero. Therefore, he might want to work on managing his income to get a positive net cash flow. There is no indication that Ted is putting any money in savings.
Hope it helps!