Answer:
The current stock price is $21.54
Explanation:
The current price of the share of Knightmare Inc is the present value of all future cash flows receivable from owning stake in the company.
The future cash flows in this sense are the dividends payable by the company in years 1,2 and 3 which are $6.15,$9.05 and $12.25 per share respectively.
The discount factor in this case is given as 1/(1+r)^N where r is the required rate of return of 11.7% and the relevant year of dividend receipt,hence the share price is computed thus:
Year cash flow discount factor PV
1 $6.15 1/(1+11.7%)^1=0.89525 $5.5
2 $9.05 1/(1+11.7%)^2=0.80148 $7,25
3 $12.25 1/(1+11.7%)^3=0.71753 $8.79
Total present value $21.54
Answer: d. 2.27
Explanation:
Asset Turnover = Total sales / Average Assets
Last years turnover ratio was 2.0 so assume Sales were $20 and Assets were $10 which would give the turnover of 2.0
The new turnover would be;
= (20 * 1.25)/(10 * 1.1)
= 25/11
= 2.27
Answer:
b. the creation of different meanings based on social and cultural context.
Explanation:
According to my research, I can say that based on the information provided within the question this provides an example of the subjectivity of the interpretation process. This basically means that the creation of someones judgement is based on personal opinions from social and cultural context. Therefore it can be said that the answer to this question would be b. the creation of different meanings based on social and cultural context.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000
Answer:
$6600
Explanation:
Given: Selling price= $250 per unit
Variable cost= $181 per unit.
Fixed cost= $430000.
Expected Profit= $25400.
Let´s assume the number of units sold be "x".
Revenue (R) = 
Cost of product (C)= 
∴ Cost of product (C)= 
Now, finding the number of unit sold.
Forming an equation for profit.
We know, Profit= 
⇒ 
Opening parenthesis.
⇒ 
⇒ 
Adding both side by 430000
⇒ 
Dividing both side by 69
⇒ 
∴ 
Hence, total number of units sold to earn $25400 is 6600 units.