Answer:
14.08
Explanation:
Calculation for what is its ROE
Using this formula
ROE = Profit margin*Total asset turnover*Equity multiplier
Let plug in the formula
ROE=4*2.2*1.6
ROE=14.08
Therefore the ROE will be 14.08
What did this embargo cost the U.S taxpayers?
Answer:
explanation below
Explanation:
The Cuban embargo, known as el bloqueo (the blockade), was one that happened due to Cuba’s expropriation of “some $1.8 billion worth of U.S.-owned property. The US put policies in place to restrict the way other countries engage in businesses with Cuba.
As the embargo continued to affect the people of Cuba, it also cost the US far more than expected. Certain reports has it that the US has lost nearly all its international support for the embargo. The cost of the embargo on the economy of the US was around $130 billion over nearly six decades.
All of the following are typically considered capital goods except
A. The machinery in a factory
B. The software a business owns
C. Cooked hot dogs at a sporting event
D. A carpenters tools
E. A professional musicians instruments
Answer:
C. Cooked hot dogs at a sporting event
Explanation:
Capital goods are tangible assets that businesses use to produce goods and services for sale. Capital goods are not meant for sale but are used to make products that will be sold to generate revenue. Capital goods have a useful life exceeding one year and include buildings, equipment, motor vehicles, and tools.
From the list provided, Cooked hot dogs at a sporting event are not capital goods. All the other items are capital goods. They do not get consumed in the production process.
The use of real property that is changed or prohibited by a subsequent zoning regulation is known as a:
Answer:
A nonconforming use.
Explanation:
The use of real property that is changed or prohibited by a subsequent zoning regulation is known as a nonconforming use.
This ultimately implies that, when a property is allowed to be used legally under the zoning regulations (ordinances) during the period it was established but no longer permitted for use, as a result of subsequent change made by a prior owner or in the zoning regulations (ordinances).
James Company has 1,000 shares of $10 par preferred stock, which were issued at par. It also has 25,000 shares of common stock outstanding, and its total stockholders' equity equals $500,000. The book value per common share is:
Answer:
The book value per common share is: $19.6
Explanation:
1,000 × 10 = 10,000
500,000 - 10,000 = 490,000
490,000 ÷ 25,000 = 19.6
In 2010, the average cost of a house in France is 126,000 euros. In 2018, the average cost is 154,000 euros.Using the price of the average house for reference, the inflation rate of the Euro increased by a factor of __________ in eight years.
Answer: D.) 1.22
Explanation:
Price in 2010 = €126,000
Price in 2018 = €154,000
Increase = 154,000/126,000
= 1.22
Which statement is true according to the article?Choose one:A. Chilean companies aim to improve their wine distribution in China.B. Most wine consumed in China was imported from California.C. Despite the tariffs, the volume of wine exports from the United States to China has increased slightly.D. Only the United States has used tariffs in this trade dispute with China.
Answer:
The answer is "Option A".
Explanation:
In this question, the first choice is correct because the Chilean organizations continue to improve the existing wine business in the country of China, with Chile aiming to the advantage of the military conflict as well as expand its position in the Chinese beverage (wine) market though the wider optimization.
The production possibilities model illustrates an inverse relationship between two goods or services because
Answer:
production of different types will compete for limited resources.
Explanation:
The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.
The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.
An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.
Crane Corp. had total variable costs of $269,100, total fixed costs of $111,600, and total revenues of $390,000. Compute the required sales in dollars to break even.
Answer:
the break even point in dollars is $360,000
Explanation:
The computation of the break even sales in dollars is given below:
Break even sales in dollars is
= Fixed cost ÷ contribution margin ratio
where,
Contribution margin ratio is
= (Sales - variable cost) ÷ (Sales)
= ($390,000 - $269,100) ÷ ($390,000)
= 31%
Now the break even point in dollars is
= $111,600 ÷ 0.31
= $360,000
Hence, the break even point in dollars is $360,000
A sole proprietorship, a corporation (Subchapter S and Subchapter C) and an LLC are three common entities that are employed by entrepreneurs when starting a business. When weighing the advantages and disadvantages of these three entities, which do you think is the more advantageous business formation for an entrepreneur? Why? Feel free to suggest an alternate business entity if you so desire, but be specific as to why your choice would be better.
Answer:
The more advantageous business formation for an entrepreneur is:
A sole proprietorship.
Explanation:
Easy to start and simple to operate is the sole proprietorship, suitable for an innovative entrepreneur. It provides a better option for a low-risk business, with no additional taxation of income. Since an entrepreneur creates a new business, bearing most of the risks and enjoying most of the rewards, the sole proprietorship form of business provides the best starting point before he or she can join with others.
Jonathan wants to create a web page visually. Which of the following should he use?
HTML
Java
Text Editor
WYSIWYG
Answer:
HTML
Explanation:
Answer:
HTML
Explanation:
cool hall inc. manufacutirng overhead for the year was estimated to be $702,540. if the predetermined overhead rate is based on direct labor hours, then the estimated direct labor hours if the predetermined overhead rate is based on direct labor-hours, than the estimated direct labor hours of the beginning of the year used tin the predetermined overhead rate must have been
Answer:
31,504 direct labor hour
Explanation:
The computation is shown below:
Manufacturing overhead applied is
= Actual Manufacturing overhead + Over-applied overhead
= $697,450 + $40,680
= $738,130
Now
Manufacturing overhead applied is
= Predetermined overhead rate × Actual direct labor hour
$738,130 = Predetermined overhead rate × 33,100 direct labor hour
Predetermined overhead rate is
= $738,130 ÷ 33,100 direct labor hour
= $22.30 direct labor hour
Now
Estimated direct labor hour = Estimated Manufacturing overhead ÷ Predetermined overhead rate
= $702,540 ÷ $22.30 direct labor hour
= 31,504 direct labor hour
What will most likely cause a lender to deny credit?
OA short credit history with high balances
O Possession of two credit cards
OA small amount of debt owed
OA historic credit score of 300
Answer:
A historic credit score of 300
Explanation:
A credit score is a numeric record that expresses the reliability of a borrower to repay loans. The credit score or credit rating is determined by, among other things, credit history, income level, and the individual's income to debt ratio.
Credit scores range between 300 and 850. 300 is the lowest and the poorest score. A score of 300 indicates that the borrower has a bad history of debt repayment. They are always late on repayments, miss on installments, or have defaulted on loans. Lenders consider such persons as high-risk borrowers and are likely to deny them credit facilities.
Trying to inspire someone to vote at the next election involves:
a.
strengthening likes
b.
motivating to action
c.
weakening beliefs
d.
changing values
guys please help me out
Answer:
I'd say b. just a guess so if im wrong sorry
Trying to inspire someone to vote in the next election involves motivating to action, hence option B is correct.
What is Voter Apathy?In electioneering processes, it is often common for people not to come out to exercise their franchise, this is called voter apathy.
Voter apathy accounts for the singular reason behind the rigging of the election.
Learn more about voter apathy here:
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Please help with the highlighted part. this is a practice essay
Answer:
Expansion: A speedup in the pace of economic activity defined by high growth, low unemployment, and increasing prices.
Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction.
Contraction: A slowdown in the pace of economic activity defined by low or stagnant growth,...
there you go hope you consider brainliest
Explanation:
The primary difference(s) between selecting the binomial (Cox-Ross-Rubinstein) model for valuing stock options versus the Black-Scholes option pricing model is:
Answer:
the consideration of the option over a period of time
Explanation:
The Cox-Ross-Rubinstein model is a market model to valuations of the options. It isl also known as the Binomial model. And most popularly known s the CRR model. It is multi period market stock model for stock price.
The Black-Scholes option pricing model is used to estimate the fair policy or the theoretical value of a call that is based o 6 variables including time, volatility, strike price, type of option, etc.
The main differences of a Cox-Ross-Rubinstein model and a Black-Scholes model is
--the consideration of any option over the period of time
--it is used for the stocks which pays a dividend without the model modification .
Briefly summarize the works of Maslow, Herzberg, McClelland, McGregor, Ouchi, Thamhain and Wilemon, and Covey. How do their theories relate to project management.
Answer:
Following are the solution to this question:
Explanation:
According to Maslow:
He thought that people get a set of incentives related to subconscious and rewarding desires. He stated people are motivated and meet certain criteria. Once the needs are fulfilled, an individual tries to achieve the next one, etc. In each hierarchy of Maslow involves 05 motivating factors, also described in hierarchical levels within a pyramid. It model could be divided through necessities (or shortcomings) (e.g. physiologic, protection, love, and appreciation) and the process produces.The original five-stage template hierarchy includes:
Wind, food, drink, shelter, heat, sexuality, sleep - your anatomical, and physical needs. Security needs – safety, law, laws, restrictions, stability, and safety. Character or love requires - job, family, love, relationship. It needs – self-esteem, achievement, mastery, autonomy, status, domination, reputation, and management responsibility. Requires for self-update – personal capacity development, personality, self-development, or peak knowledge.According to Herzberg:
He shows which work-related to satisfaction were mostly triggered through different causes and did not simply oppose the very same causes as previously believed.
The overall conclusion of Herzberg was clear and clear, and due to the scope and breadth of Herzberg's study design and analysis, Herzberg's figures can be read in several various ways.
According to McClelland:
A motivational model that attempts to explain how the demand for efficiency, intensity, or affiliate affects the actions of people in such a management sense is created by the psychenist, David McClelland's Request Concept.
A desire to master tasks and situations drive people who are motivated by success.A desire to build and sustain personal interactions inspire students via an affiliation. You appreciate participation in a group but want to be loved.According to Ouchi:
Theory Z was identified first as William Ouchi's special organizational structure. He claimed that perhaps the emerging managerial approach, known as Theory Z, will out any to benefit from the many benefits from both structures.
Sustainable employment
That conventional United states organizations, while the workers are afflicted with shorter-term obligations, can unwittingly facilitate managers with much more conventional leadership viewpoints treat workers simply as interchangeable cogs in profitable machines.
Slow assessment and support
Form A usually distinguished by quick performance assessments as well as the prompt promotion of top achievers.
According to Thamhain and Wilemon:
Authority: the legal right to issue command spatially. Task: a presumed ability of the project manager to affect future work tasks for the employee. Budget: The perceived capacity of a project manager and authorize the use of extra money by others. Advancement: the ability to develop the position of the employee. Cash: its opportunity to compensate and benefit the employee. Penalty: that ability of the systems engineer to prosecute. Challenge of work: its opportunity to allocate tasks that is focused on the role of a worker. Expertise: unique expertise perceived by the project manager that others consider important.Friendship: A systems engineer can develop good relations.According to Convey:
These 7 habits can be defined as follows:Be positive. Begin to think about the end. First, put the very first things. Think again and win.Seek to understand first, to then understand. Substantially boost. Shake the sight.Process improvement theories:
Ideas mostly on software development linked to Maslow's, Herzberg, McClelland, Ouchi, Thamhain, and Wilemon, and Convey. In the area of human funds, Maslow’s hierarchy is of great importance.
Carl Lester has liquid assets of $3,400 and current liabilities of $1,800.(a) What is his current ratio
Answer:
A. Current ratio = 1.9
B. A current ratio of 1.9 will be totally viewed as less than desirable.
Explanation:
(a) Calculation for What is his current ratio
Using this formula
Current ratio= Liquid assets / Current liabilities
Let plug in the formula
Current ratio= $3,400 / $1,800
Current ratio = 1.9
(b) The comment that best describes his financial position is that A current ratio of 1.9 will be totally viewed as less than desirable.
SGS Corp. has an ROE of 14 percent and a payout ratio of 22 percent. What is its sustainable growth rate?
Answer:
14.05%
Explanation:
Return on equity ROE =14%
payout ratio = 22%
Now, retention ratio b = 100-payout ratio= 100-22=88%
=0.88
Now sustainable growth rate = (ROE×b)/(1-(ROE*b)
= (0.14*0.88)/(1-0.14*0.88) =0.1405
=14.05%
Total profits and losses are determined by:_______
a. subtracting explicit costs from total revenue.
b. subtracting implicit costs from total revenue.
c. adding total cost to total revenue.
d. subtracting total cost from total revenue
Answer:
The correct option is d. subtracting total cost from total revenue.
Explanation:
Total revenue refers to total amount of receipts than can be gotten from the sales of goods or services by a seller to buyers.
Total cost can described as the addition of all costs incurred in order to produce a particular level of output by an organization.
Total Total profits and losses are determined by subtracting total cost from total revenue as given below:
Total profits (losses) = Total revenue - Total cost
Therefore, the correct option is d. subtracting total cost from total revenue.
State two goals you hope to achieve through applying your coursework this term to your workplace experience.
Explanation:
1. Improve communication skills
2. Apply customer relationship marketing
The current business scenario is globalized and highly competitive, the social dynamics resulting from globalization and new technologies have changed the demands and relations between company / consumer, this new parameter requires companies to be promoters of society's well-being, acting with socio-environmental responsibility in the market, which means that this includes the relationship with all its stakeholders.
Therefore, it is essential that interpersonal communication skills are improved in a management-oriented course and applied to the work environment, as organizations have more and more responsibilities when dealing with people, and negotiation and communication skills with people are increasingly valued. different nationalities and culture, with ethics in communication being an essential factor.
Relationship marketing is also another essential factor that must be applied in the workplace, especially if you work directly with the customer or work using the internet, since companies are closer to customers, and must generate value and engagement that creates market identification and positioning.
A goal is termed as the idea of the future result that is committed to achieving. It can be a plan or envision that is to be accomplished by a group of persons. The deadline is set for the accomplishment of the goals by the group of people.
The two goals to achieve in the workplace are:
1. Improve communication skills
2. Apply customer relationship marketing
The current business scenario is globalized and highly competitive, the social dynamics resulting from globalization and new technologies have changed the demands and relations between company and the consumer. Relationship marketing is also another essential factor that must be applied in the workplace.
Therefore, it is essential that interpersonal communication skills are improved in a management-oriented course and applied to the work environment, as organizations have more and more responsibilities when dealing with people, and negotiation and communication skills with people are increasingly valued.
To know more about the accomplishment of the goals, refer to the link below:
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Build a schedule for the following staffing requirements, giving workers two consecutive days off per cycle (not including Sunday). Assume that 4 days of work is full time.
Day Mon Tue Wed Thu Fri Sat
Staff needed 3 4 2 3 4 5
Answer:
Explanation:
The following process is used to schedule staffing requirements.
Start appointing workers in a way that two days contain the lowest amount of staff required are designated first.
Then, we minus 1 from each cell except for the selected pair of days.
After that, we lookout for pairs of days that contain the least amount of staff requirements.
We will then repeat the above process until the staffing requirements are fully met.
OUTPUT:
[tex]\ A\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ B\ \ \ \ \ \ \ \ \ \ \ C\ \ \ \ \ \ \ \ \ \ \ D\ \ \ \ \ \ \ \ \ \ \ E\ \ \ \ \ \ \ \ \ \ \ F\ \ \ \ \ \ \ \ \ \ \ G[/tex]
[tex]1 \ \ \ \ Day \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Mon \ \ \ \ \ \ \ \ \ \ \ Tue \ \ \ \ \ \ \ \ \ \ \ Wed \ \ \ \ \ \ \ \ \ \ \ Thur \ \ \ \ \ \ \ \ \ \ \ Fri \ \ \ \ \ \ \ \ \ \ \ Sat[/tex]
[tex]2 \ \ \ \ Staff \ needed \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 5[/tex]
[tex]3 \ \ \ \ Worker \ 1 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ \mathbf{2 \ \ \ \ \ \ \ \ \ \ \ 3} \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 5[/tex]
[tex]4 \ \ \ \ Worker \ 2 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \mathbf{ 2 \ \ \ \ \ \ \ \ \ \ \ 3} \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4[/tex]
[tex]5 \ \ \ \ Worker \ 3 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ \mathbf{1 \ \ \ \ \ \ \ \ \ \ \ 2} \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3[/tex]
[tex]6 \ \ \ \ Worker \ 4 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ \mathbf{1 \ \ \ \ \ \ \ \ \ \ \ 2} \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 2[/tex]
[tex]7 \ \ \ \ Worker \ 5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \mathbf{0 \ \ \ \ \ \ \ \ \ \ \ 1}[/tex]
[tex]8 \ \ \ \ Worker \ 6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ 1 \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ 1[/tex]
[tex]9 \ \ \ \ No \ working^* \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 2 \ \ \ \ \ \ \ \ \ \ \ 3 \ \ \ \ \ \ \ \ \ \ \ 4 \ \ \ \ \ \ \ \ \ \ \ 5[/tex]
10 *count the number of workers after excluding highlighted cells and 0 values.
Day Minimum number of workers needed
[tex]Mon \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3[/tex]
[tex]Tue \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4[/tex]
[tex]Wed \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2[/tex]
[tex]Thur \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3[/tex]
[tex]Fri \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4[/tex]
[tex]Sat \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5[/tex]
Explain what a cash budget is and why it is important for all businesses.
Answer:
A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.
Explanation:
Damon convinced his aunt to lend him $6,900 to purchase a plasma digital TV. She has agreed to charge only 12 percent simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year
Answer:
444
Explanation:
Simple Interest for a year can be calculated using
I = PRT/100
P= Principle amount
R= percent simple interest
T= time
(3700)(12)(1)/100 = 444
Now suppose instead that housing credits are withdrawn gradually at a rate of $500 for each $1,000 that someone is earning above the wage limit of $28,500 per year. Assuming Layla earns an extra $2,000 per year above her original wage of $29,500 per year, how large will her housing credit be
Answer:
Housing credit will be = $6000
Explanation:
Solution:
As, this question is not complete, it lacks essential data to proceed. But I have found that data on internet and will be solving this question accordingly.
Data given:
Layla's wages per year = $29500
Housing credits = $7500
Layla's new income with Housing credit = $37000
As given in question:
Layla earns an extra $2000 per year above her original wage.
New Layla's income per year = $31500
So, now,
Layla's income without housing credit = $31500
Wage limit allowed = $28500
So, Layla earns $3000 more than wage limit
Hence,
$500 for $1000
$1500 for $3000
So, $3000 will be deducted from the housing credit
So,
Layla's total income = $31500 + ($7500 - $1500)
Layla's Total income = $31500 + $6000
Layla's Total income = $37500
Where,
Housing credit will be = $6000
Briefly describe what is meant by the industrial market structure (IMS). Why is an understanding of the IMS so important for companies in their strategic management process
Answer is given below:
Explanation:
Industrial market structure is a systematic representation of different organization based on the level of competition for these products or services the nature and nature of these products or services in the market. Industry market is structured is important in a company's strategic management process for the following reasons Clearly assess business objectives Knowing how much competition there is in the market. Get details of your competitor's business development. Competing in the marketA vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the
Answer:
+$183,000
$0
+$183,000
Explanation:
Total assets increased by ($298,000 - $115,000) $183,000.
Total liabilities has no change
Total shareholder equity increased by ($298,000 - $115,000) $183,000.
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 390,500 682,100 Total cost $ 301,600 $ 405,500 $ 707,100 Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department
Answer:
the total cost of ending work in process is $39,420
Explanation:
The computation of the total cost of ending work in process is shown below:
Equivalent cost per unit
Material = $301,600 ÷ 5,200 units = $58 per unit
Conversion = $405,500 ÷ 5,000 units = $81.10 per unit
Now ending work in process is
= 400 units × $58 + 200 units × $81.10
= $23,200 + $16,220
= $39,420
Hence, the total cost of ending work in process is $39,420
you are considering a project with the cash flows given below. calculate the present value of the future cash flows of the project. discount rate 25%
Answer:
the present value of the future cash flows is $846.57
Explanation:
The computation of the present value of the future cash flows is shown below:
The Present value of inflows is
= Cash inflows × Present value of discounting factor (rate%,time period)
= $100 ÷ 1.25 + $200 ÷ 1.25^2 + $300 ÷ 1.25^3 + $400 ÷ 1.25^4 + $500 ÷ 1.25^5 + $600 ÷ 1.25^6
= $846.5664
Hence, the present value of the future cash flows is $846.57
Why have nonalcoholic drinks increased in popularity, and what difficulties do bar managers face when serving alcohol
Answer:
People consumes less of alcohol and more of non alcoholic drinks.
Explanation:
Now-a days people consumes less of alcoholic drinks as non alcoholic beverages or drinks are becoming non popular day by day. People have become more health conscience and wants to remain fit. Now wonder alcohol causes a lot harm to the human health. People now are aware of the side effects of consuming alcohol.
In the recent years the life style of the people have change a lot and they they have become health conscious than before. The consumption of other non alcoholic drinks have become familiar and famous including green tea, fruit juices, goji juice and many more.
The bar managers also face difficulty in serving alcohol to people as people refuse to drink them. They are more health conscience and is aware of the fatal incidents about drunk driving. They prefer other non beverages in the bar. As a result the sale of alcohol has decreased a lot. There are also various awareness programs running against consumption of alcohol.Thus people do not drink alcohol any more and so it is difficult for the bar managers to offer alcohol to their customers.
Parcel Corporation expects to pay a dividend of $5 per share next year, and the dividend payout ratio is 50 percent. If dividends are expected to grow at a constant rate of 8 percent forever, and the required rate of return on the stock is 13 percent, calculate the present value of growth opportunities.
Answer:
The present value of growth opportunities is $23.08
Explanation:
First, we need to calculate the price with growth
Stock Price = Expected Dividend / ( Required rate of return - growth rate )
Where
Expected Dividend = $5
Required rate of return = 13%
Growth rate = 8%
Pacing values in the formula
Stock Price = $5 / ( 13% - 8% )
Stock Price = $100
Now determine the expected EPS
EPS = Dividend / Payout ratio
Where
Dividend = $5
Payout ratio = 50%
Placing values in the formula
EPS = $5 / 50%
EPS = $10
Now calculate the present value of growth opportunity
PV of Growth opportunity = Price with growth - ( EPS / Required rate of return )
Where
Price with growth = $100
EPS = $10
Required rate of return = 13%
Placing value in the formula
PV of Growth opportunity = $100 - ( $10 / 13% )
PV of Growth opportunity = $100 - $76.92
PV of Growth opportunity = $23.08