Answer:
Austin Grocers
1. Projected 2017 Net Income
= $102 million
2. Expected Growth Rate in Dividends
= 6.25% (2/32 x 100)
Explanation:
a) Income statement (in millions of dollars):
2016 2017
$'millions $'millions
Sales $700 $840
Operating costs
including depreciation 500 630
EBIT $200 $210
Interest 40 40
EBT $160 $170
Taxes (40%) 64 68
Net income $96 $102
Dividends $32 $34
Addition to
retained earnings $64 $68
b) Sales for 2017 = $840 million ($700 x 1.2)
c) Operating costs for 2017 = $630 million ($840 x75%)
d) Taxes for 2017 = $68million ($170 x 40%)
e) Dividend payout ratio = Dividend/Net Income = 33.33%
f) Growth Rate in Dividends = Dividend Increase/Previous year's dividend x 100 = 6.25% (2/32 x 100)
Answer:
PV= $12,242.27
Explanation:
Giving the following information:
Cf= 950
Nominal interest= 0.0750 monthly compounded
<u>First, we need to determine the real interest rate:</u>
Monthly interest rate= 0.075/12= 0.0625
Real annual rate= (1.00625^12) - 1= 0.0776
N<u>ow, we can calculate the present value using the following formula:</u>
PV= Cf/ i
PV= 950/0.0776
PV= $12,242.27
<h2>Hello!</h2>
The answer is: d. total costs
<h2>
Why?</h2>
The total costs are the sum of all the costs needed to produce a good or a service. It includes both fixed and variable production costs to show us the measure of a total cost.
We can calculate the total costs using the following formula:
Fixed costs are all the constant costs. Fixed costs can be the salary of its workers (since they are based in hours worked), structure and good/actives insurance, taxes among others.
Variable costs are all the costs that can change thru the time, depending on the production volume. For example, if the production increases, the variable costs will increase too, also, if the production decreases, the variable costs will decrease too.
Have a nice day!
<span>The correct answer is C. Equipment loans are not usually tied to the redevelopment of the business real estate in any way. Equipment and real estate are two distinct classes of business assets. An equipment loan would, however, be tired to the equipment itself as the nature of the equipment would determine the amount of the loan. The equipment would also usually serve as collateral on the loan. The financial position of the borrow and the business's overall cash flow (but mainly its operating cash flow) would also be tied to the equipment loan in that these items would help the bank assess the risk of the loan and therefore determine the interest rate and terms of the loan.</span>
If the demand for loanable funds shifts to the right, then the equilibrium interest rate and quantity of loanable funds rise.
<u>Option: A</u>
<u>Explanation:</u>
The availability of loanable funds is savings dependent. Lending is dependent on desire for loanable funds. The relationship between the savings supply and loan requirement decides the real interest rate and the amount is being loaned out.
The requirement for loanable funds reflects lenders' actions, as well as the amount of loans requested. The smaller the rate of interest, the less costly it is to lend. The balance of loanable funds on the market is done because the amount of loans lenders want is the same as the amount of savings that savers have. The interest rate varies to ensure that both are equivalent.
