Answer:
Annual deposit= $4,169.59754
Explanation:
Giving the following information:
Donald Martin is 30 years and wants to retire when he is 65.
PV= 6,450 + 4,300= $10,750
i= 0.0854
Number of years= 35
First, we need to calculate the final value of the initial investment:
FV= PV*(1+i)^n
FV= 10,750*(1.0854^35)
FV= 189,257.05
Now, we can calculate the annual deposit required. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
FV= 1,000,000 - 189,257.05= 810,742.95
A= (810,742.95*0.0854) / [(1.0854^35)-1]
A= $4,169.59754
The answer is income statement, balance sheet, and statement
of cash flows. The income statement defines how the assets and
liabilities were used in the specified accounting period. The cash flow
statement clarifies cash inflows and outflows, and it
will eventually disclose the amount of cash the corporation
has on hand, which is also stated in the balance sheet.
Answer:
a) DuPont analysis for Johnson International
2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%
2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%
2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%
b) DuPont analysis for industry averages
2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%
2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%
2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%
c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.
Explanation:
The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:
R
OE = net pro
fit margin x total assets turnover x financial leverage
Answer:
B. a dividend yield which is less than that of the average firm
Explanation:
The P/E ratio can be regarded as ratio that give analysis of value that market is willing to pay at the moment with regards to the earnings in past or future. When the P/E ratio is high then
stock's price is considered high compare to the earnings, a low P/E ratio can be interpreted as having low stock price with respect to the earnings. Stocks that has its P/E ratios below 15 are usually regarded as been cheap , those with ratio above 18 are considered expensive. It should be noted that, A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has a dividend yield which is less than that of the average firm.
