Answer:
Intrinsic value is $45
Explanation:
The starting point to determining Rivoli Company intrinsic value is to compute the earning after tax as shown below:
Earnings after tax=earning before tax*(1-tax rate)
earnings before tax is $600,000
tax rate
earnings after tax=$600,000*(1-0.25)
=$600,000*0.75
=$450,000
Then we need to compute earnings per share;
Earnings per shares=earnings after tax/weighted average number of shares
=$450,000/100,000
=$4.5
Intrinsic value=earnings per share/cost of equity
cost of equity is 10%
intrinsic value=$4.5/10%
=$45
Answer:
The correct answer is 35%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Weighted average contribution margin ratio by using following formula:
weighted-average contribution margin ratio = (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)
= ( 30 × 75% ) + ( 50 × 25%)
= 22.5% + 12.5%
= 35%
Answer:
12%
Explanation:
A = P(1+r)^n
A (amount) = $1126000
P (principal) = $362000
n = 10 years
1126000 = 362000(1+r)^10
1126000/362000 = (1+r)^10
(1+r)^10 = 3.1
1+r = 3.1^0.1
1+r = 1.12
r = 1.12 - 1 = 0.12 = 12%
Answer:
The correct answer is 3. identification of a strategic resource gap that will impede future growth.
Explanation:
The build-borrow-or-buy framework is adopted to develop the most appropriate strategy towards an organization's growth. It provides three alternatives to the management: build the asset itself, borrow it from an external organization, or simply buy it.
Sometimes, any one of these three options is applicable to an organization, but typically, a combination of these may be preferred by the management, thus adopting a multi-faceted approach.
The first step in the build-borrow-or-buy framework is to identify strategic resource gaps that could impede future growth using the organization's strategic planning process. This is because it is necessary to identify right at the beginning what resources the organization needs going into the future. If this gap is wrongly assessed, the organization, may under-estimate or over-estimate its existing resources, thus ending up with the wrong growth strategy.
