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galina1969
6 days ago
12

The Sports Club plans to pay an annual dividend of $1.20 per share next year, $1.12 per share a year for the following two years

, and then a final liquidating dividend of $14.20 per share four years from now. How much is one share of this stock worth to you today if you require a rate of return of 18.7 percent of this risky investment?
Business
1 answer:
harina [3.5K]6 days ago
7 0
The calculated cash flow after taxes amounts to $9.63. The question outlines the annual dividends paid over four years, with values specified for each year. Taking into account the present values for these dividends enables us to determine the worth of the stock, leading to a final value of approximately $9.63.
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The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredicta
harina [3522]
The accurate answer is option (c). Explanation: According to the posed question, firms or organizations opt to reduce their inventory since higher spending on inventory translates to increased overall costs on other related inventory expenses. The rationale is that maintaining a fully stocked inventory results in rising costs associated with inventory upkeep, which is not advantageous for the business.
7 0
9 days ago
INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%
Katen [3220]

Answer:

The interest amounts to $1,000,000.

Explanation:

The standard format of an income statement includes:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

For this case:

EBIT equals $6,000,000.

The interest is to be determined.

Tax is calculated as 0.40.

EBITDA stands at $3,000,000.

The interest formula is: interest = [EBITDA / (1 - tax)] - EBIT

Substituting values, interest = 3000000 / 0.60 - 6000000 = -$1,000,000.

With EBIT at 6 million, the interest is $1 million, and the tax amounts to 2 million (calculated as (EBIT - interest) * 0.40).

Thus, the net income is $3 million.

7 0
29 days ago
The value proposition does not serve to:
soldi70 [3439]
The value proposition does not define the leadership of the partnership. The proper answer is A. This proposition signifies a commitment to generate value. Achieving this involves the collaboration of multiple individuals and strategies to fulfill that promise. Shared objectives, changes, and the involvement of partners are critical components of the value proposition.
3 0
8 days ago
Jenna works at the grocery store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours durin
Nady [3258]

Answer:

ingresos/anualmente - costos/anualmente - impuestos = ganancias

Explanation:

20 horas/semana en un año tiene 4 semanas; 20*52=1040 horas/año

8 horas/1 domingo al año; trabaja solo 12 domingos; 8h*12=96h

$9/hora de ingresos

$1000 costos fijos

$1500 en viajes

20% de impuestos

1040+96= 1136 horas/año

1136*9= 10224 $/año en ingresos totales

10224-1000-1500=7724 ganancias antes de intereses e impuestos

7724*(1-0.20)=6179.20 ganancias netas

7 0
1 month ago
Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.
soldi70 [3439]

Answer: (A) Greenfield investment

Explanation:

 A greenfield investment is a form of Foreign Direct Investment (FDI) aimed at constructing various new production facilities within a business.

The primary aim of the greenfield investment method is to provide investors with control while creating diverse opportunities for managing market partnerships.

Based on the provided question, the greenfield investment method is instrumental in establishing new operations in Indonesia, thus representing a type of foreign direct investment.

Therefore, Option (A) is the correct selection.

7 0
24 days ago
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