Your boss, Sally Maloney, treasurer of Fred Clark Enterprises (FCE), asked you to help her estimate the intrinsic value of the company's stock. FCE just paid a dividend of $1.00, and the stock now sells for $17.50 per share. Sally asked a number of security analysts what they believe FCE's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5% per year in Year 4 and thereafter. Sally asked you to use that information to estimate the required rate of return on the stock, rs, and she provided you with the following template for use in the analysis.
Estimated rs = 10.00% (must be changed to force Calculated Price to equal the Actual Market Price)
Actual Market Price, P0: $17.50 Rapid growth Normal growth
Year 0 1 2 3 4 5
Dividend growth rate (insert correct values) 10% 10% 10% 5% 5%
Calculated dividends (D0 has been paid) $1.00 ? ? ? ? ?
HV3 = D4/(rs - g4). Find using Estimated rs. ? Total CFs ? ? ? PVs of CFs when discounted at Estimated rs ? ? ? Calculated Price = P0 = Sum of PVs = $0.00 A positive number will be here when dividends are estimated.
The Calculated Price will equal the Actual Market Price once the correct rs has been found.
Sally told you that the growth rates in the template were just put in as a trial, and that you must replace them with the analysts' forecasted rates to get the correct forecasted dividends and then the estimated HV. She also notes that the estimated value for rs, at the top of the template, is also just a guess, and you must replace it with a value that will cause the Calculated Price shown at the bottom to equal the Actual Market Price. She suggests that, after you have put in the correct dividends, you can manually calculate the price, using a series of guesses as to the Estimated rs. The value of rs that causes the calculated price to equal the actual price is the correct one. She notes, though, that this trial-and-error process is quite tedious, and that the correct rs could be found much faster with a simple Excel model, especially if you use Goal Seek. What is the value of rs?
a. 9.83% b. 13.97% c. 10.54% d. 12.44% e. 11.84%
Answers
The correct rs could be found much faster with a simple Excel model, especially if you use Goal Seek ,The value of rs is 13%.
What is the value of rs?This may be resolved in Excel by:
determine each year's dividend PV.
Years 0 – 1 – 2 – 3 – 4
1*1.10 1*1.1^2 1*1.1^3 1*1.1^3 *1.05
We use the following equation to get the terminal value of the increase after year 4:
Div1 = PV(n-1) (Rs-Growth)
Years 1 through 4 are:
CF 1.1 1.21 1.331 1.3975
PV (CF1/(1+rs)), (CF2/(1+rs)), (CF3/(1+rs)), (CF4/(rs-0.05)), (CF4/(1+rs))
The PV values must add up to 15 because the price is equal to 15.
By altering the value of rs, you may instruct Excel to calculate the sum of those functions until it equals 15.
Rs = 0.1297 or ~13%
The value of rs is 13%.
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Related Questions
The average lifespan of a new battery is 2234 hours before burning out. The standard deviation is 412 hours and the lifespans are normally distributed. What percentage of batteries last between 2100 and 3100 hours?
Answers
Answer:
no clue I don't study battery's sorry
If a store has a “buy one, get one free” sale and an item costs $10, what is the marginal cost of the second item?
Answers
Answer:
D). $0
Explanation:
Marginal cost is described as the 'increase in cost that accompanies a unit increase in the output.' It is characterized as the partial derivative of the cost function with respect to the output. It is calculated by the change in cost divided by the change in quantity. In the given case, the marginal cost for the second item would be $0 because it is for free and if we divide 0/1, we get 0. Thus, there is no additional cost for producing that extra good and hence, option D is the correct answer.
a house was valued at 329,000 over several years the value decreased by 8% giving the house a new value fill in the blank to write the new value in terms of the old value right your answer is a decimal
Answers
A house was valued at 329,000 over several years the value decreased by 8% giving the house a new value fill in the blank to write the new value in terms of the old value right your answer is a decimal 326368
What is value?
The term value refers to the particular amount was the situated on the terms. The value was the direct of the numerical equation to the used. The value was to put on the equation and the finding the solutions. The value are the used on the directly proportional.
According to the given,
valued at 329,000 over several years
value decreased by 8%
X = 329,000 - (329,000 × 0.08)
X = 326368
As a result, the significance of the value are the aforementioned.
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Your question is incomplete, but most probably the full question was.
A house was valued at $329,000. Over several years, the value decreased by 8%, giving the house a new value.
(a) Fill in the blank to write the new value in terms of the old value.
Write your answer as a decimal.
New value = 1 x Old value
(1) Use your answer in part (a) to determine the new value.
New value: 0
Types of controls used to assess the effectiveness of marketing operations
Answers
Existing customer analysis
Testing research with a focus group
Customer opinions and feedback
Your welcome if this helps
Describe why the facility should have an inventory
list of equipment.
Answers
so people don't buy the same things again & again
to see
whats in stock
where they are displayed
how many they have
keep track of inventory
plan for restocking
know which items are running low
asset value for accounting or financial purposes.
Overall, an inventory list of equipment is a fundamental tool for facility management, providing comprehensive oversight, efficient maintenance planning, cost control, compliance adherence, emergency preparedness, and facilitating decision-making processes. It streamlines operations, enhances asset management, and contributes to the overall productivity and functionality of a facility.
Keeping Track: An inventory list helps facility managers know what equipment they have and where it is located.
Taking Care: The list helps plan when to fix or maintain equipment so it stays in good condition.
Saving Money: By knowing what equipment they have, managers can avoid buying things they don't need and spend money wisely.
Following Rules: Some facilities have rules to follow, and the inventory list helps managers keep track of important things like safety checks and paperwork.
Being Ready for Emergencies: The inventory list helps managers know which equipment is important during emergencies like fires or storms.
Planning and Buying: The inventory list helps managers decide what new equipment to buy and make a budget.
Talking to Insurance and Money People: The inventory list helps when talking to insurance or money people because it shows what equipment the facility has and how much it's worth.
provides information about the administrative and clinical machines in the facility.
gives you more control over your business' assets.
equipments inventory list provides information about the administrative and clinical machines in the facility. This information is used by the provider, supervisor, and/or accountant for future planning and tax paperwork
What is the most effective learning theory in your opinion? Explain how does it modify one’s behavior? Support your answer with relevant examples.
Answers
Answer:
Experiential Learning Theory
Explanation:
I think that the experiential learning theory is the most effective learning theory. This learning theory projects experience as a crucial factor that promotes learning. It also explains that people learn better when they initiate their learning and not when they are forced to learn.
I think this theory is very effective as it makes the lessons learned to stick better and also cause the needed changes. For example, a teenager who is constantly reminded by his parents to avoid late night partying, but rejects the counsel, might learn better if he gets into trouble as a result of the experience. Also, a student who finds it difficult to understand a topic taught by a teacher, might get better at it when he initiates the learning himself by actively researching and studying on his own.
critcism of modern management theory
Answers
Critics argue modern management theory is rigid, short-sighted, lacks inclusivity, and limits employee empowerment and engagement.
Modern management theory has received its fair share of criticism. One critique is its overemphasis on rigid hierarchical structures, which can stifle creativity and hinder employee autonomy. Another criticism is the focus on short-term financial gains, often at the expense of long-term sustainability and employee well-being. Critics argue that this approach neglects the importance of social and environmental factors in organizational success. Additionally, modern management theory is often criticized for its lack of inclusivity and failure to address issues of diversity and equity. Furthermore, some argue that the reliance on top-down decision-making and command-and-control structures limits employee engagement and empowerment. These criticisms highlight the need for a more flexible, holistic, and human-centered approach to management that takes into account the complex dynamics of organizations and their impact on individuals and society.For more such questions on Modern management theory:
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●
Howard receives a direct mail solicitation from Easy Times Credit. The solicitation
reads "Poor credit? No credit? No problem! You qualify for a major credit card! Call
900-555-1111 and get your credit card today!"
What law or rule is illustrated in this situation?
Introduction to money and ba
Answers
This is the situation that arises due to the false call that is being received. and this is a case where the cheating is done.
What is credit?Credit can be defined as the moment when the goods can be sold out the services can be rendered but the money or the amount that is to be paid will be to them after some time.
As Howard would have received a direct email from easy times credit. In which tells them that they will be able to provide him with any kind of credit. This will be spam mail or spam email. This illustration clearly depicts how bad the situation is and someone is providing them with false information.
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The question is incomplete, the complete question is:
Howard receives a direct mail solicitation from Easy Times Credit. The solicitation reads: "Poor credit? No credit? No problem! You qualify for a major credit card! Call 900-555-1111 and get your credit card today!"
What law or rule applies to this situation? Is it legit? Explain.
What statement is true of SMART goals?
It only applies to short-term goals.
It refers to goals that you select as top priority.
They align your goals to the direction in which you want to go.
It only applies to long-term goals.
Answers
They align your goals to the direction in which you want to go.
If you wish to receive R57145 in two years time and you can earn an interest rate of 8% per annum compounded annually how much in rands (no cents) should you invest today?
Answers
You should invest R57145 in rands today. Interest is the fee paid for having access to borrowed funds.
While the interest rate used to compute interest is often reported as an annual percentage rate (APR), interest expense or revenue is frequently expressed as a dollar figure. The compensation a lender or financial organization receives for giving out money is called interest. The percentage of a stockholder's ownership in a corporation that is also referred to as interest.
The cost of borrowing money is called interest, and it is typically stated as a percentage, such as an annual percentage rate (APR). Lenders may charge interest to borrowers for using their funds, or borrowers may charge interest to lenders for using their funds.
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Differentiate between piecemeal and time related salary determination methods
Answers
use this link
https://brainly.com/question/18427994
Sophie’s Tobacco Shop has total assets of $98.8 million. Fifty percent of these assets are financed with debt of which $30.6 million is current liabilities. The firm has no preferred stock but the balance in common stock and paid-in surplus is $26.4 million.
What is the balance for long-term debt and retained earnings on Sophie’s Tobacco Shop’s balance sheet?
Answers
Answer:
The total debt on the balance sheet is $98.8 million x 50% = $49.4 million.
Explanation:
The current portion of debt is given as $30.6 million, so the long-term debt is $49.4 million – $30.6 million = $18.8 million.
The balance of common stock and paid-in surplus is $26.4 million, which means the retained earnings balance would be: $98.8 million – $30.6 million – $18.8 million – $26.4 million = $22.0 million.
Therefore, the balance for long-term debt on Sophie’s Tobacco Shop’s balance sheet is $18.8 million, and the balance for retained earnings is $22.0 million.
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $15.98 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $745,726 per year. Administrative cost (all fixed) totals $527,604. Comer expects to sell 239,900 strings of light next year.
1. Calculate the break-even point in units.
2. Calculate the margin of safety in units.
3. Calculate the margin of safety in dollars.
Answers
1. The calculation of the break-even point in units for Comer Company is as follows:
= Fixed costs/Contribution margin per unit
= 111,500 units ($1,273,330/$11.42)
2. The calculation of the margin of safety in units for Comer Company is as follows:
= current sales minus the breakeven point sales units
= 128,400 units (239,900 - 111,500)
3. The calculation of the margin of safety in dollars for Comer Company is as follows:
= total budgeted sales revenue and break-even sales in dollars
= $2,051,832 (128,400 x $15.98)
What is the break-even point?The break-even point is the point at which the total revenue equals total costs (including variable and fixed costs).
At the break-even point, both in units and in dollars, the organization records no profit or loss.
The margin of safety shows the total number of sales (in units or dollars) above the breakeven point.
Data and Calculations:Selling price per string = $15.98
Variable costs:
Direct materials $1.87
Direct labor 1.70
Variable factory overhead 0.57
Variable selling expense 0.42
Total variable cost per unit = $4.56 ($1.87 + $1.70 + $0.57 + $0.42)
Contribution margin per unit = $11.42
Contribution margin ratio = 71.46% ($11.42/$15.98 x 100)
Fixed manufacturing cost totals $745,726 per year
Administrative cost (all fixed) totals $527,604
Total fixed costs = $1,273,330 ($745,726 + $527,604)
Expected sales units next year = 239,900 strings
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On January 1, 2021, Red Flash Photography had the following balances: Cash, $17,000; Supplies, $8,500; Land, $65,000; Deferred Revenue, $5,500; Common Stock $55,000; and Retained Earnings, $30,000. During 2021, the company had the following transactions:
1. February 15 Issue additional shares of common stock, $25,000.
2. May 20 Provide services to customers for cash, $40,000, and on account, $35,000.
3. August 31 Pay salaries to employees for work in 2021, $28,000.
4. October 1 Purchase rental space for one year, $17,000.
5. November 17 Purchase supplies on account, $27,000.
6. December 30 Pay dividends, $2,500.
The following information is available on December 31, 2021:
Employees are owed an additional $4,500 in salaries.
Three months of the rental space has expired.
Supplies of $5,500 remain on hand.
All of the services associated with the beginning deferred revenue have been performed.
required:
1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2. Record the adjusting entries in the 'General Journal' tab.
3. Review the adjusted 'Trial Balance' as of December 31, 2021.
4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab.
5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab.
6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab.
7. Record the closing entries in the 'General Journal' tab.
Answers
Answer:
izts 16 56 to the 8th semester of October and November watching the dirt
you are on vacation when your manager calls and asks for the password to your office computer because she needs immediate access to an important file. which of the following social engineering approaches is primarily being used?
Answers
Hackers can gain access to your systems through outdated software. They locate the software's weaknesses and come up with strategies for exploiting them.
Internet browsers and computer operating systems, which are used by everyone, are frequently the targets of software assaults. With the aid of a password manager, both people and organisations can store and manage all of their passwords in one secure strategies location. Users won't have to remember numerous passwords as a result. All they need to remember to access their password manager is their master password. physical protections such as a secure area with locked doors, etc. technical security measures such encryption, passwords, and security software.
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Nudge’ units now abound in the public sphere and online marketing circles – are any of the points below NOT ‘nudges’?
a) using an opt-in box for organ donation (in a Drivers License Application)
b) placing water bottles instead of soft drink cans near the register in the cafeteria
c) a sign, placed near the door of a room in an office building, which reminds people that they should turn off the light when they leave
d) feedback to households about their and neighbours’ electricity usage
Answers
Nudge units now abound in the public sphere and online marketing circles all the listed points are nudges. All options a, b, c and d are nudges.
Without taking away choice or requiring a certain course of action, nudges are interventions that aim to change behavior by making minor changes to the environment. The use of opt-in boxes for organ donation, the placement of healthier food and drink options in visible locations, signs urging people to conserve energy and feedback on one's own and their neighbors' energy use are a few examples of nudges.
Nudges are becoming more and more liked in the public eye and in online marketing circles because they are frequently inexpensive and successful ways to encourage positive behavior change. Nudges can help people make better decisions by making small changes to their environment without restricting their freedom of choice.
Nudges are thought of as a non-intrusive way to encourage behavioral change because they work by using subliminal cues to affect how decisions are made. All options a, b, c and d are nudges.
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This résumé format focuses on the tasks or skills that an applicant can perform:
a.
Chronological
b.
Functional
c.
Electronic
d.
Scannable
Answers
The functional resume format focuses on the tasks or skills that an applicant can perform. Thus, option D is correct.
What is a resume?A resume can be defined as a document with suggestions that the details of a particular person, especially an applicant, are being mentioned. It usually defines the person's career information as well as some personal background. Also, if they have taken any courses or have had any experience, all of this is mentioned in a resume.
A functional resume can be defined as a resume whose purpose is to focus on the skills of a person. The primary focus is on the skill that a person processes.
Therefore, option D is the correct option.
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In which situation would a certificate of deposit (CD) be the best banking choice?
A. Samuel is setting money aside but still needs emergency access to it.
B. Hafsa wants a guaranteed return, and won’t need the money for several years.
C. Darren is looking for an investment that has a very high interest rate.
D. Raj is looking for an investment with a fast return so he can reinvest.
Answers
In this situation a certificate of deposit (CD) would be the best banking choice is Darren is looking for an investment that has a very high interest rate.
In the best banking choice, if you want a safe investment with a higher interest rate than a regular savings account.
A certificate of deposit is issued t a discount given at face value. It is similar to an FD, certificate of deposit aims to denote in writing that you have deposited money in the bank for a fixed period and the bank would pay you interest- based on the amount and the period of your deposit.
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why do you think p2p apps have become so popular?
Answers
P2P payment apps are popular in the U.S. because they make the exchange of money easy. Nearly half (46%) of smartphone owners say they regularly use peer-to-peer payment apps. These apps offer convenience and flexibility when it comes to making payments.
Substitute x = b 2 into the simplified expression, the value was 20.
Answers
Answer:
b= 10 x = 20
Explanation:
b= 10. 10 x 2 =x
Therefore the value of X is 20 if you substitute the value twenty for x then divide that value by two you received your variable b's answer.
-5/12 - (-9/3) how do i do this
Answers
Explanation:
\(-5/12 - (-9/3)\)
When Walmart advertises that it has the lowest prices, it is using a _________ strategy to separate itself from its competitors by meeting a customer need
Answers
Walmart is using a positioning strategy to separate itself from its competitors by meeting a customer need.
What is positioning?The positioning of the market is a strategic practice used to identify a brand or product in the market by a company. It is a strategy used to distinguish a firm's product.
The positioning strategy can help communicate the firm’s or the product’s value proposition, which communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it.
Hence, Walmart is using a positioning strategy to separate itself from its competitors by meeting a customer need.
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It's important for the interviewer to know about your biggest professional accomplishment.
True
or
False
Answers
Answer: false
They may not want to know what you have done, like got a wife, or won a award in 3rd grade for highest jump off a swing. If it is job related they may, but probably not.
Explain the formation of research proposal and it's format.
Answers
A research proposal is a document that outlines a researcher’s plan to conduct a specific research project.
What is research proposal?A research proposal is a document that outlines the research project that one intends to undertake. It provides a summary of the background and rationale for the proposed study, outlines the research objectives and methods, and identifies potential resources and risks. The research proposal also serves as a map for the researcher in order to ensure the completion of the project within a specific timeline and budget. The research proposal should be free from plagiarism and should be written in an organized and professional manner.
The format of a research proposal may vary depending on the field of research, the institution, and the funding body.
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a comparison of the proportion of employees in a protected group with the proportion that each group represents in the relevant labor market is called a(n) _____. multiple choice question.
Answers
A comparison of the proportion of employees in a protected group with the proportion that each group represents in the relevant labour market is called Workforce Utilization Review.
What is the labour market?A labour market is a place where workers and employees interact with one another. Employers compete to hire the best, and employees compete to find the most satisfying job.
A labour market in an economy operates on the basis of labour demand and supply. It is an important part of any economy and is intricately linked to capital, goods, and services markets.
Therefore, Workforce Utilization Review is a comparison of the proportion of employees of each group in the relevant labour market.
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What aspect of the control environment is affected by the company's decision to no longer require approvals for purchase order discounts
Answers
Answer:
. When temporary workers are recruited the wages might be less but the accuracy extent is quite questionnable. Even the slightest mistake by the workers will make the permanent workers liable. Though the wages of the temporary workers are less.
Explanation:
(>‿◠)✌
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
Acquired $32,000 cash from the issue of common stock.
Borrowed $38,000 cash from National Bank.
Earned cash revenues of $50,000 for performing services.
Paid cash expenses of $46,000.
Paid a $1,200 cash dividend to the stockholders.
Acquired an additional $22,000 cash from the issue of common stock.
Paid $10,000 cash to reduce the principal balance of the bank note.
Paid $55,000 cash to purchase land.
Determined that the market value of the land is $77,000.
Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
Answers
The percentage of assets that were provided by investors, creditors, and earnings is $84,800.
What is investors?An investor is any individual or other entity such as a business or mutual fund who invests money with the hope of making a profit.
A technique for company improvement called the Investors in People Standard aims to boost an organization's performance through its workforce. The management and growth of an organization's workforce aids in performance improvement and the achievement of goals.
Calculation-
Balance sheet
assets = liability + stockholder's earning,
Cash+land = notable payable+common stock+retained earning
$29800+$55000=$28000+$54000+$2800.
$84800=$84800
Income statement
Revenue-expenses =net income
$50000-$46000=$4000
Thus, it is $84,800.
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The working note and solution is attached-
Suppose that in an economy the structural unemployment rate is 3.1 percent, the friction unemployment rate is 1.7 percent, and the unemployment rate is 8.1 percent. The natural unemployment rate is_____ percent and the cyclical unemployment rate is _____ percent a. 4.8;3.3
b. 6.7; 3.3
c.1,4; 3,3
d. 4,8; 12,9
Answers
The natural unemployment rate is 4.8 percent and the cyclical unemployment rate is 3.3 percent .
The lowest rate of unemployment brought on by real or voluntary economic factors is known as organic Or natural unemployment, or the natural rate of unemployment. The number of persons experiencing natural unemployment indicates those who are jobless as a result of the composition of the labour force, such as those who have supplanted by technology or those who lack the needed skills to find employment. It represents the total number of jobless persons as a result of the labour force's structure, including those who have been replaced by machines but who lack that requisite skills to find employment. Whereas The fraction of overall unemployed that is specifically caused by episodes of economic growth and decline is known as cyclical unemployment. Traditionally, joblessness surges during times of recession and lowers during boom period. This is done mainly to reduce cyclical unemployment during depressions.
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Assume the credit terms offered to your firm by your suppliers are 2.7/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Answers
Answer: 49.02%
Explanation:
The cost of the trade credit will be calculated thus:
Amount when discount is availed will be: = 100-2.7 = 97.3
Discount rate = 2.7
Interest rate per period = 2.7/97.3 2.77%
Number of Days = 30-5 = 25
Therefore, the EAR will be calculated as:
= [(1+2.77%)^(365/25)] - 1
= 49.02%
F brown lent us 4000 giving us the money by cheque
Answers
Answer:
See below
Explanation:
This transaction is affecting the bank's balance and F brown accounts. It is increasing the bank balance( asset account) by 4000 and increasing accounts payable/F brown ( liabilities account) by 4000.
An increase in assets is debited while an increase in liabilities is credited.
The journal entry will be
Bank A/c Dr. 4000
F brown A/c 4000