Answer:
royal crown cola
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
both companies have an elastic demand because their coefficient of elasticities is greater than 1. Coke has a higher elasticity as a result, consumers would respond sharply to changes in price. this makes them enjoy less brand loyalty when compared with royal crown cola that has a lower elasticity of demand
Explain where in the U.S. balance of payments an entry would be recorded for each of the following:
a. A Hong Kong financier buys some U.S. corporate stock.
b. A U.S. tourist in Paris buys some perfume to take home.
c. A Japanese company sells machinery to a pineapple company in Hawaii.
d. U.S. farmers gave food to starving children in Ethiopia.
e. The U.S. Treasury sells a bond to a Saudi Arabian prince.
f. A U.S. tourist flies to France on Air France.
g. A U.S. company sells insurance to a foreign firm.
Answer:
a. This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.
b. This is an imports of merchandise and it will be recorded under current account in the BOP.
c. This is also an import of merchandise and it will be recorded under current in the BOP.
d. This is an exports of merchandise and it will be recorded under current in the BOP.
e. This an outflow of capital and it will be recorded under capital accounts in the BOP.
f. This is a purchase or import of service and it will be recorded under current account in BOP.
g. This is a sale or export of service and it will be recorded under current account in the BOP.
Explanation:
Balance of Payment (BOP) refers to the statement in which every monetary transactions made between residents of a country and the rest of the world during a specific period are recorded.
Balance of payments records the inflows and outflows of capital which monitors under capital account, imports and exports of merchandise and service which are monitor under current account, and financial transactions.
Therefore, we have:
a. A Hong Kong financier buys some U.S. corporate stock.
This a capital inflow and it will be recorded in the capital account in the BOP in the BOP.
b. A U.S. tourist in Paris buys some perfume to take home.
This is an imports of merchandise and it will be recorded under current account in the BOP.
c. A Japanese company sells machinery to a pineapple company in Hawaii.
This is also an import of merchandise and it will be recorded under current in the BOP.
d. U.S. farmers make a gift of food to starving children in Ethiopia
This is an exports of merchandise and it will be recorded under current in the BOP.
e. The U.S. Treasury sells a bond to a Saudi Arabian prince.
This an outflow of capital and it will be recorded under capital accounts in the BOP.
f. A U.S. tourist flies to France on Air France.
This is a purchase or import of service and it will be recorded under current account in BOP.
g. A U.S. company sells insurance to a foreign firm.
This is a sale or export of service and it will be recorded under current account in the BOP.
REMAX, a real estate company in Houston, performed an analysis of 500 Houston homes they sold last year. Each home was categorized by initial asking price and number of days the home was listed before it sold. Reference Equations Number of Homes: Initial Asking Priceless or equal than$200,000 Initial Asking Price> $200,000 Total Days Listed Until Sold less or equal than30 125 95 220 Days Listed Until Sold >30 115 165 280 Total 240 260 500 Find P(price > $200,000 and sold less or equal than 30 days). a. 0.3654 b. 0.1900 c. 0.2288 d. 0.4318
Answer: 0.1900
Explanation:
To find P(price > $200,000 and sold less or equal than 30 days), we have to look at the reference equation table and then look out for the point whereby price is greater than $200000 and sold less or equal than 30 days.
Based on the information given, this will be at a point where we've 95. Since the overall possible outcome is 500, then P(price > $200,000 and sold less or equal than 30 days) will be:
= 95/500
= 0.1900
The correct option is B.
Bing Corporation acquired two inventory items at a lump-sum cost of $120,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Bing sells 1,000 units of LF, what amount of gross profit should it recognize
Answer: $7,500
Explanation:
3,000 units of LF normally costs:
= 3,000 * 30
= $90,000
7,000 units of 1B normally costs:
= 7,000 * 10
= $70,000
Together they cost:
= 90,000 + 70,000
= $160,000
Use this to calculate the proportional cost of LF from the lump sum:
= 90,000 / 160,000 * 120,000
= $67,500
Cost per unit of LF purchased at lump sum cost:
= 67,500 / 3,000 units
= $22.50
Gross profit:
= (Selling price - Cost per unit) * 1,000 units
= (30 - 22.50) * 1,000
= $7,500
Which of the following is an example of a good with elastic supply in the short run?
Answer: passenger airplanes
Explanation:
"Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.12 per unit, and the variable labor cost is $1.9 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $420,000 during a year in which total production is 189,000 units. What are the total costs for the year? c. If the selling price is $8.55 per unit, what is the NSI break-even on a cash basis? d. If depreciation is $94,500 per year, what is the accounting break-even point?"
Answer:
Night Shades Inc. (NSI)
a. The variable cost per unit is:
= $3.02.
b. The total costs for the year is:
= $990,780.
c. The NSI break-even on a cash basis is:
= $503,091.
d. The accounting break-even point is:
= $647,150.
Explanation:
a) Data and Calculations:
Variable costs per unit:
Materials = $1.12
Labor = 1.90
Total = $3.02
Total production units = 189,000
Total variable costs = $570,780
Fixed costs = $420,000
Total costs = $990,780
Per unit:
Selling price = $8.55
Variable costs 3.02
Contribution $5.53
Contribution margin in percentage = $5.53/$8.55 * 100 = 64.7%
Fixed costs on cash basis = FC - Depreciation = $325,500 ($420,000 - $94,500)
Break-even point on a cash basis = $325,5000/0.647 = $503,091
Break-even point in sales dollars = $420,000/0.647 = $647,150
During the month of June, Indigo Boutique recorded cash sales of $274,990 and credit sales of $165,636, both of which include the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 3
Answer and Explanation:
The journal entry is shown below
Sales tax (($257,000 + $154,800) ×7%) $28,826
To sales tax payable $28,826
(Being the sales tax expense is recorded)
Here the sales tax is debited as it increased the expense and credited the sales tax payable as it also increased the liability
The calculation is as follows;
= $27,4990 ×100 ÷ 107
= $257,000
And,
= $165,636 × 100 ÷ 107
= $154,800
The following information was extracted from the first year absorption-based accounting records of Baldwin Corporation Total fixed costs incurred $100,000 Total variable costs incurred 50,000 Total period costs incurred 70,000 Total variable period costs incurred 30,000 Units produced 20,000 Units sold 12,000 Unit sales price $12 Refer to Baldwin Corporation. Based on variable costing, if Baldwin had sold 12,001 units instead of 12,000, its income before income taxes would have been Select one: a. $8.33 higher. b. $11.00 higher. c. $9.50 higher. d. $8.50 higher.
Answer:
is not impospol ok hom many transilet
The crowding out effect: increases the multiplier effect, so that an increase in taxes reduces income by more. increases the multiplier effect, so that an increase in taxes reduces income by less. decreases the multiplier effect, so that an increase in taxes reduces income by more. decreases the multiplier effect, so that an increase in taxes reduces income by less.
Answer: decreases the multiplier effect, so that an increase in taxes reduces income by more.
Explanation:
The multiplier effect is the increase aggregate production in the economy due to an increase in spending by the government. A crowding out effect refers to when the spending by the government is at the expense of the private sector such that the private sector is unable to invest and grow.
The multiplier effect will therefore decrease as private investment slows. This leads to lower incomes for people as the economy is not expanding. If the government were to tax people at that point, it would take more of their income than less.
On April 1, George Hart, Jr. acquired a 25 percent interest in the Wilson, Hart, and Company partnership by gift from his father. The 25 percent partnership interest had been acquired by a $50,000 cash investment by Hart, Sr. 10 years ago. The fair market value of Hart, Sr.'s partnership interest was $60,000 at the time of the gift. Hart, Jr. sold the 25 percent interest for $85,000 on December 17. What type and amount of capital gain should Hart, Jr. report on his tax return
Answer:
long-term capital gain of $25,000.
Explanation:
Based on the information given the type and amount of capital gain Hart, Jr. Should report on his tax return is A LONG-TERM CAPITAL GAIN OF the amount of $25,000. Calculated as:
Long-term capital gain=Interest sold-Partnership interest fair market value
Let plug in the formula
Long-term capital gain=$85,000-$60,000
Long-term capital gain=$25,000
Therefore Hart, Jr. Should report on his tax return is A LONG-TERM CAPITAL GAIN OF $25,000
Assume a portfolio is worth $70,000, consisting of X, Y, and cash. Also assume you invested $35,000 in X, $14,000 in Y and the rest in cash, and that X and Y have betas of 1.45 and 0.80 respectively. Calculate the portfolio beta. (Provide numerical answer to 3 decimal places.)
Answer:
0.885
Explanation:
Beta measures systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
Percentage of x = $35,000 / 70,000 = 0.5 = 50%
Percentage of y = $14,000 / 70,000 = 0.2 = 20%
Percentage of cash = 100 - (50 + 20) = 30%
Cash usually have a beta of zero
portfolio beta = (0.5 x 1.45) + (0.2 x 0.8) + (0.3 x 0) =
0.725 + 0.16 + 0 = 0.885
0.725
0.16
Fixed costs are $1500000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?
Answer:
$6,000,000
Explanation:
Calculation to determine the break-even point in dollars
Using this formula
Break-even point (Dollars)=Fixed costs/(1-Variable costs percentage of unit selling price)
Let plug in the formula
Break-even point (Dollars)=$1,500,000/ (1-.75)
Break-even point (Dollars)=$1,500,000/.25
Break-even point (Dollars)=$6,000,000
Therefore the break-even point in dollars is $6,000,000
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
1. At what point should he reorder Stein beer?
A. 0 cases remaining
B. 4 cases remaining
C. 12 cases remaining
D. 16 cases remaining
E. 20 cases remaining
2. If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?
A. 0.25 days
B. 3 days
C. 1 day
D. 4 days
E. 20 days
3. If he were to order 16 cases of Stein beer at a time, what would be the average inventory level?
A. 4 cases
B. 12 cases
C. 8 cases
D. 20 cases
E. 16 cases
4. If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?
A. $2.00
B. $4.00
C. $1.28
D. $3.28
E. $2.56
5. What is the economic order quantity for Stein beer?
A. 8 cases
B. 11 cases
C. 14 cases
D. 20 cases
Answer:
1. C. 12 cases remaining
2. B. 3 days
3. A. 4 Cases
4. A. $2.00
5. B. 11 cases
Explanation:
4 cases of beer are sold everyday. The ordering cost is $8.00 per order,
Reorder point = Lead time * Units demanded per day
Reorder point = 3 days * 4 cases of beer = 12 cases remaining
Economic Order Quantity = [tex]\sqrt{\frac{2* Annual demand * Ordering cost}{Holding cost per unit} }[/tex]
EOQ = 11 cases
Tying sales happen when Select the correct answer below: a customer is required to buy one product only if the customer also buys a second product. two or more products are sold as one. firms divide markets by allocating customers. an existing firm reacts to a new firm by dropping prices very low until the new firm is driven out of the market.
Answer:
a customer is required to buy one product only if the customer also buys a second product.
Explanation:
Tying sales means the circumstance in which a customer is needed to purchase other item so that he or she is able to acquire the commodity
So here it refers that the situation where the customer is needed to purchase one product only in the case when the customer also purchased the second product
Therefore as per the given situation, the first option is correct
Decentralizing Group of answer choices Is a trend that creates a head-quarter office Organizes business in independent business units Creates a more complex and less robust organization Decisions are made at the headquarters
Questlon 5 of 10 What is the source of funds for transactions completed with debit cards?
O A. The source varies by transaction
O B. Bank account
O C. Wages or salary
O D. Independent creditor
The source of funds for transactions completed with debit cards is wages or salary. Thus, option C is correct.
What are Debit card?The account number for a debit card payment is directly connected to the cardholder's bank account. The whole cost of the purchase is instantly subtracted from the account balance of the customer. The issuing bank must verify that the cardholder has enough money to finish the transaction.
Debit cards, often called check cards or bank cards, are payment cards that may be used to make transactions instead of cash. The term "plastic card" refers to both the aforementioned and identification cards. Therefore, it can be concluded that option C is correct.
Learn more about Debit card here:
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The marketing manager at Home Depot works with Hunt Advertising to coordinate all promotional messages for a product or a service. For example, to sell the new line of lighting fixtures, the marketing manager and Hunt Advertising make sure that all messages are consistent at every contact point at which Home Depot interacts with the consumer. This is an example of _______. a. AIDA model b. content marketing c. integrated marketing communications (IMC) d. promotional mix
Answer:
The answer is "Choice d"
Explanation:
The Advertising Mix is the integration of publicity, personal selling, advertising, and marketing. To maintain a sustainable mix of those promotional resources, advertisers need to look only at the following questions. It really is the company's promotional software. With the assistance of the marketing manager and a 3rd parties advertiser, they sell the offering.
Assume that the reserve-deposit ratio is 0.2. The Federal Reserve carries out open-market operations, purchasing $1,000,000 worth of bonds from banks. This action increased the money supply by $2,600,000. What is the currency-deposit ratio
Answer:
Explanation:
Money multiplier (MM) = Increase in money supply / Purchase of bonds
Money multiplier (MM) = $2,600,000 / $1,000,000
Money multiplier (MM) = 2.6
Reserve deposit ratio (RR) = 0.2
If currency deposit ratio be CR, then,
MM = (1 + CR) / (CR + RR)
2.6 = (1 + CR) / (CR + 0.2)
2.6CR + 0.52 = 1 + CR
1.6CR = 0.48
CR = 0.3
So, the currency-deposit ratio is 0.3
Income after deducting vacancy, collection losses and adding in income from other sources that is available to pay expenses is referred to as:
Answer: Effective gross income
Explanation:
The income after vacancy, collection losses has been deducted and adding income from other sources that is available is added to pay expenses ia called the effective gross income.
Effective gross income can be calculated when the potential gross rental income is added with income and then the vacancy and the credit costs of a rental property is subtracted.
The effective gross income is important as it helps in determining the rental property value and also the true positive cash flow that can be produced.
Rover Corporation purchased a truck at the beginning of 2017 for $109,200. The truck is estimated to have a salvage value of $4,200 and a useful life of 120,000 miles. It was driven 21,000 miles in 2017 and 29,000 miles in 2018. What is the depreciation expense for 2018
Answer:
Annual depreciation= $25,375
Explanation:
Giving the following information:
Purchase price= $109,200
Salvage value= $4,200
Useful life in miles= 120,000
To calculate the depreciation expense, we need to use the units-of-activity method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
2018:
Annual depreciation= [(109,200 - 4,200) / 120,000]*29,000
Annual depreciation= 0.875*29,000
Annual depreciation= $25,375
Information you might study in a particular class is called (blank)
an elective
a club
curriculum
an internship
Answer:
curriculum is the correct answer right no
Answer:
Information you might study in a particular class is called curriculum
Sally took out a $70,000, 5-year term policy at age 45. The premium per $1,000
was $4.21. She will be 50 years old this year. The premium per $1,000 will be
$5.90. What is the percent increase?*
40%
45%
42%
52%
K
Suppose the Alaskan king crab harvest is unregulated and any person with a crab boat and some diesel fuel can go offshore, lower a crab pot, and harvest king crab. As a result, this common resource is overused. Which policy choice might produce the socially optimal king crab harvest
Answer: A. Alaska auctions a limited number of licenses to harvest king crab.
Explanation:
The options include:
A. Alaska auctions a limited number of licenses to harvest king crab.
B. The U.S. and Canadian governments remove trade barriers, which allows for more trade of products like king crab.
C. Alaska removes taxes on diesel fuel, which lowers the price of diesel.
D. Alaska subsidizes the purchase of crab boats.
The socially optimal level of output will be achieved when there's allocative efficiency. It is the level whereby market failure is curtailed.
The policy choice that might produce the socially optimal king crab harvest is for Alaska to auction a limited number of licenses to harvest king crab.
This will help in the reduction at which the resource is overused as there'll be regulation and reduction in the number of person that can harvest king crab.
A website such as Lucky Brand can target each of the following with remarketing, except:____.
a. individuals who visited the site from a different device than the device they are currently using.
b. visitors to Lucky Brand that placed an item in the shopping cart, but did not make a purchase.
c. visitors who have made a previous purchase.
d. individuals who visited the Lucky Brand website within a specific time period, such as within 30 to 90 days.
Answer:
a. individuals who visited the site from a different device than the device they are currently using.
Explanation:
In the case when the website like lucky brand would target the visitors who add the items in the shopping cart but didnot checkout, the visitors who have done purchase previously or the individuals who visited the website within a time period i.e. 30 to 90 days
but the individuals who visited the website not from the same device they are using right now does not represent the targeting
Retail companies compete based on:
a) Customer service
b) Value
c) Price
d) All of the above
Answer: D. all of the above
Explanation:
Retail companies compete based on Customer service, Value and Price(all of the above).
What is a retail company?Retail companies are businesses that render the sale of goods and provision of services to customers for their consumption.
They typically sell items and services in-store and online, snce they are direct distributors to consumers.
Examples of retail companies include
Walmart CostcoAmazonare known for clothing, drug, grocery, and convenience stores.
These companies compete for customers based on
the Value they renderbest price Customer serviceLearn more about Retail companies here:https://brainly.com/question/17613245
Bonaime, Inc., has 7.7 million shares of common stock outstanding. The current share price is $62.70, and the book value per share is $5.70. The company also has two bond issues outstanding. The first bond issue has a face value of $71.7 million, a coupon rate of 7.2 percent, and sells for 89.5 percent of par. The second issue has a face value of $36.7 million, a coupon rate of 8.2 percent, and sells for 88.5 percent of par. The first issue matures in 22 years, the second in 14 years. The most recent dividend was $3.70 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 30 percent.
What is the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Cost of equity %
What is the company’s aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Aftertax cost of debt %
What is the company’s equity weight? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Equity weight
What is the company’s weight of debt? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Debt weight
What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC
Answer:
Bonaime, Inc.
1. The company's cost of equity = 5.90%
2. The company's after-tax cost of debt = 5.92%
3. The company's equity weight = 83.32%
4. The company's debt weight = 16.68%
5. The company's WACC = 5.9035%
Explanation:
a) Data and Calculations:
Common stock outstanding = 7.7 million shares
Current share price = $62.70
Book value per share = $5.70
Most recent dividend per share = $3.70
1. Cost of equity = Dividend/Current share price = $3.70/$62.70 = 5.90%
Value:
Book value = 7.7 million * $5.70 = $43,890,000
Market value = 7.7 million * $62,70 = $482,790,000
Bonds outstanding: First Bonds Second Bonds Total
Face value = $71,700,000 $36,700,000 $108,400,000
Coupon rate 7.2% 8.2%
Annual coupon payment $5,162,400 $3,009,400 $8,171,800
Market value per bond 89.5% 88.5%
Market value of bonds $64,171,500 $32,479,500 $96,651,000
Before tax cost of debt = $8,171,800/$96,651,000 = 0.08455
2. After tax cost of debt = 5.92% (0.08455 * (1 - 0.30))
3. The company's equity weight = Equity Market Value/Total Firm's Value
= $482,790,000/$579,441,000
= 83.32%
4. The company's debt weight = 1 - 0.8332
= 16.68%
5. The company's WACC = Cost of equity * Weight + Cost of Debt * Weight
= (5.90% * 83.32%) + (5.92% * 16.68%)
= (0.0590 * 0.8332) + (0.0592 * 0.1668)
= 0.04916 + 0.009875
= 0.059035
= 5.9035%
b) The costs of equity and debts are based on their market values instead of the book value. The market values are always more relevant in capital decision-making than the book values.
The comparative balance sheets for Pina Colada Corp. show these changes in noncash current asset accounts: accounts receivable decreased $78,500, prepaid expenses increased $28,200, and inventories increased $41,700. Compute net cash provided by operating activities using the indirect method, assuming that net income is $226,500.
Answer:
Cash Flow from Operating Activities
Net Income $226,500
Decrease in Accounts Receivable $78,500
Increase in Prepaid Expenses -$28,200
Increase in Inventories -$41,700
Cash Provided by Operating Activities $235,100
What is the major difference
between an attraction and
entertainment?
• An attraction always requires a paid admission.
An attraction can be
part of a travel package.
An attraction is offered year-round.
An attraction offers retail services.
Answer:
The major difference between an attraction and entertainment is
An attraction can be part of a travel package.
Explanation:
Answer:
Answer: An attraction always requires a paid admission.
Explanation:
Juan Martinez, a systems engineer at a construction machinery company, just received his performance appraisal from his boss, Emily Taylor. Although Juan has been mostly an average performer, Emily gave him below average ratings due to the fact that the person who Emily evaluated before Juan was Max Houser, an exceptional performer. This is an example of what type of rating error
Answer: Contrast
Explanation:
Contrast error is a type of rating error whereby how a target person is evaluated in a group is dependent and affected by how others perform in that group.
Contrast error is used in appraising the performance of an individual and the rating of a candidate will be affected by how the person before him or her was rated. Based on the question, Juan was rated below average because the person before him was given an exceptional rating.
The market consensus is that Analog Electronic Corporation has an ROE = 9%, has a beta of 1.25, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This year’s earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming year’s market return is 14%, and T-bills currently offer a 6% return.
a. Find the price at which Analog stock should sell.
b. Calculate the P/E ratio.
c. Calculate the present value of growth opportunities.
d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock. The market is still unaware of this decision. Explain why V0 no longer equals P0 and why
V0 is greater or less than P0.
Explanation:
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the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy so 1293.092
a. Stock Price is $10.60 at which Analog stock should sell.
b. Trailing P/E ratio is 3.53, and Leading P/E ratio is 3.33.
c. Present value of growth opportunities (PVGO) is -$9.28.
d . The intrinsic value of the stock is $15.85.
What is P/E ratio?The price-earnings ratio (P/E ratio, P/E, or PER) is the ratio of a company's share price to its earnings per share. The ratio is used to determine the value of a company and whether it is overvalued or undervalued.
From the question, we have the following:
ROE = 9%, b = beta = 1.25, pr = Plowback ratio = 2/3 = 0.67, dpr = dividend payout ratio = 1- pr = 1/3 = 0.33
e0 = This year’s earnings per share = $3
mr = The coming year’s market return = 14%
tr = T-bills return = 6%
a. The price at which Analog stock should sell is calculated as:-
P0 = d * (1 + g) / (r - g) …………………………. (1)
Where;
P0 = Stock Price
d = dividend per share = e0 / dpr = $3 / (1 / 3) = $1
g = Sustainable growth rate = ROE * pr = 9% * 2/3 = 0.06
rf = Risk free rate = Return on T-bills = 6%
b = Beta = 1.25
mr = Market return = 14%
r = Required return on Equity = rf + b * (mr - rf) = 6% + 1.25 * (14% - 6%) = 0.16
Substituting the values into equation (1), we have:
P0 = $1 * (1 + 0.06) / (0.16 – 0.06)
= $1 * 1.06 / 0.10
= $10.60
b. The P/E ratio is calculated as:-
P/E ratio can be Trailing P/E ratio or Leading P/E ratio as follows:
Trailing P/E ratio = P0/E0 = $10.60 / $3 = 3.53
Leading P/E ratio = P0/e1 ………………………………………. (2)
Where;
e1 = e0 * (1 + g) = $3 * (1 + 0.06) = 3.18
Substituting the values into equation (2), we have:
Leading P/E ratio = $10.60 / 3.18 = 3.33
c. The present value of growth opportunities is calculated as:-
P0 = e1 / r + Pvgo …………………………………… (3)
Where Pvgo denotes present value of growth opportunities.
Since already obtained P0, e1 and r in part a and b, we just substitute them equation (3) and solve for Pvgo, we have:
$10.60 = $3.18 / 0.16 + Pvgo
$10.60 = $19.875 + Pvgo
Pvgo = $10.60 - 19.875
Pvgo = -$9.28
d. The intrinsic value of the stock is calculated as:-
g = ROE * pr = 9% * (1 / 3) = 3%
dpr = 1 – pr = 1 - 1/3 = 2/3
d = dividend per share = e0 / dpr = $3 / (2 / 3) = $2
P0 = d * (1 + g) / (r - g) = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $15.85
Therefore, the intrinsic value is $15.85 and the P/E ratio is 3.53 and 3.33 respectively.
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Questions 1. Do you think Harvard was right in inviting Chelsea Manning to become a Visiting Fellow? Why or why not?
Answer:
no i dont becuase she a spy
Explanation: