A transaction that takes place between two parties who hold

Fisher Depot just paid an annual dividend of $2.48 per share. Dividends are expected to grow by 7% per year. The required rate o

atroni [7]

Answer and Explanation:

The computation is shown below:

Last years Dividend, D0 = $2.48

Growth Rate, g = 7%

Required Return, r = 12%

Now

D1 = D0 × (1 + g)

= $2.48 × 1.07

= $2.6536

Now

1 The Current Price is

P0 = D1 ÷ (r - g)

= $2.6536 ÷ (12% - 7%)

= $53.072

2. For the stock price in 5 years is

P5 = P0 × (1 + g)^5

= $53.072 × 1.07^5

= $74.436

3. For the stock price in 20 years is

P20 = P0 × (1 + g)^520

= $53.072 × 1.07^20

= $205.37

7 0

3 years ago

The chief executive of Norell, an agency that supplies businesses with temporary workers, realizes that the health care industry

Rus_ich [418]

Answer:

D) Recognition of a need

Explanation:

The 5 stages of the buying process are:

problem recognition (or recognition of a need): this is the first stage of the buying process. At this stage the buyer realizes that he/she has an unsatisfied need or want. The buyer will try to change his current state by satisfying his/her need.
information search
evaluation of alternatives
purchase decision
post purchase behavior

4 0

3 years ago

Read 2 more answers

The following income statement is provided for Vargas, Inc. Sales revenue (2,500 units × $60 per unit) $ 150,000 Cost of goods s

Likurg_2 [28]

Answer:

The correct answer is 3.

Explanation:

According to the scenario, the computation of the given data are as follows:

Variable cost = Cost of goods sold (variable) + Supplies

= $50,000 + $10,000 = $60,000

Fixed cost = Cost of goods sold (fixed) + Administrative salaries + Depreciation

= $8,000 + $42,000 +$10,000 = $60,000

So, we can calculate the operating leverage by using following formula:

Operating leverage = Contribution margin ÷ Net operating income

Where, Contribution Margin = Sales revenue - Variable cost

= $150,000 - $60,000 = $90,000

And Net operating income = Contribution Margin - Fixed Cost

= $90,000 - $60,000 = $30,000

By putting the value, we get

Operating leverage = $90,000 ÷ $30,000

= 3

3 0

3 years ago

Identify the correct era of the various developments described below.

aleksley [76]

Answer:

1. Pre-industrial

First ad in English
Symbols and words

Pre-industrial advertising involved the first ads in English as well as extensive use of symbols and words as there was no multimedia to use voice.

2. Industrial

Unique selling proposition

3. Global Interactive

DVRs and narrowcasting

The current era. Marketing and advertising have moved on to target smaller groups with more relevant information for them. This is narrowcasting.

4. Industrializing

Marketing by wholesalers

With the rise in technology, more goods were made but advertising was still at early stages. This led to wholesalers doing their own advertising.

5. Postindustrial

Demarketing starts

The era before the current one. Advertisers started learning to influence audiences more and demarketing came along. This is advertising aimed at making consumers buy less of a product. It is usually done when products are in short supply.

7 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago