normally, cash flows from financing will start using cash during which phase of the product life cycle? a. maturity b. growth c. decline d. introduction

Answers

Answer 1

The correct answer is a) maturity. The product life cycle refers to the stages a product goes through, from its introduction to its decline.

Each stage of the product life cycle has different cash flow characteristics, with different levels of cash inflows and outflows. During the introduction phase, a company typically incurs high expenses related to product development and marketing, and there is little or no revenue generated. As a result, cash flows from financing may be used to fund these initial expenses. During the growth phase, a company may experience an increase in revenue and profits, as the product gains market acceptance. Cash flows from operations may be sufficient to fund growth-related expenses, such as expanding production capacity and marketing efforts. During the maturity phase, the product has reached its peak in terms of sales, and the growth rate slows down. At this stage, companies may use cash flows from financing to fund dividends or share buybacks, repay debt, or invest in new projects or acquisitions. Finally, during the decline phase, sales and revenue decline, and cash flows from financing may be used to support ongoing operations or to finance a restructuring of the business. In summary, cash flows from financing are most likely to be used during the maturity phase of the product life cycle when the company is generating stable revenue but may need additional funding for other purposes.

Learn more about product life cycle here:

https://brainly.com/question/15177349

#SPJ11


Related Questions

Question 7 points How many monthly payments of 5252 will it to save up 14956 when interest is 2,63 compounded quarterly Round up to the next nearest number of payment

Answers

It will take 7 monthly payments to save up 14,956 when interest is 2.63% compounded quarterly.

To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the amount at the end of the period, P is the principal (starting amount), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the time in years.

First, we need to convert the annual interest rate to the quarterly rate:

r = 2.63% / 4 = 0.6575%

Next, we can use the formula to solve for t, the time in years:

14,956 = 52(1 + 0.006575/12)^(12t/3)

14,956/52 = (1 + 0.006575/12)^(4t)

288.38 = (1 + 0.006575/12)^(4t)

ln(288.38) = 4t * ln(1 + 0.006575/12)

t = ln(288.38) / (4 * ln(1 + 0.006575/12))

t ≈ 1.337

Since we are making monthly payments, we need to round up to the next nearest number of payments:

1.337 * 12 = 16.044

Round up to 17 payments.

Therefore, it will take 7 monthly payments to save up 14,956 when interest is 2.63% compounded quarterly.

For more questions like Payment click the link below:

https://brainly.com/question/15136793

#SPJ11

Which of the following are elements of the marketing mix? (Choose every correct answer.)
a Portfolio
b Price
c Purchase
d Product

Answers

The marketing mix consists of four main elements, often referred to as the 4 P's: Product, Price, Place, and Promotion. . "Product" is an element of the marketing mix. The correct answer is d.

Product refers to the goods or services a company offers to its target customers. This includes aspects like design, features, packaging, and branding. Companies need to ensure that their products fulfill the needs and preferences of their target market.

To briefly touch on the other elements, Price involves determining the right cost for a product, taking into account factors like competition, production costs, and perceived value. Place concerns the distribution channels through which a product reaches consumers, such as retailers, online stores, or direct sales.

Finally, Promotion encompasses all the communication strategies used to inform and persuade potential customers about a product, including advertising, public relations, and sales promotions.

To know more about marketing mix refer here:

https://brainly.com/question/28527740#

#SPJ11

does the the condominium association form will cover refrigerators, air conditioners and cooking ranges that are owned by the named insured?

Answers

The condominium association form typically covers common areas and shared amenities, but it does not cover personal property, such as refrigerators, air conditioners, and cooking ranges owned by the named insured. For coverage of these items, the named insured should consider obtaining a separate condominium unit owner's insurance policy.

The coverage for refrigerators, air conditioners, and cooking ranges owned by the named insured will depend on the specific terms outlined in the condominium association form. It is important to review the policy carefully and consult with an insurance agent or representative to determine the extent of coverage for these items. In some cases, additional coverage may be necessary to fully protect these valuable assets.

Learn More about condominium here :-

https://brainly.com/question/30358809

#SPJ11

Question 1: Discuss the contributions of international financial markets on the growth of Multinational Corporations. Question 2: How does financial markets affect an MNC's value?

Answers

Adherence to global financial regulations and standards can enhance an MNC's reputation, making it more attractive to investors and increasing its overall value.

How does financial markets affect an MNC's value?

The contributions of international financial markets on the growth of Multinational Corporations (MNCs) can be identified in several ways. First, international financial markets provide MNCs with access to diverse sources of capital, allowing them to raise funds for expansion and investments. Second, these markets facilitate global trade by offering currency exchange services, enabling MNCs to conduct business transactions in different currencies.

Third, international financial markets offer MNCs the opportunity to diversify their investment portfolios by allowing them to invest in foreign assets, thus reducing risk exposure. Lastly, these markets also facilitate information sharing and enhance corporate governance by promoting transparency and adherence to international standards.

Financial markets affect an MNC's value in several ways. First, access to international capital markets enables MNCs to raise funds at potentially lower costs, thus increasing their profitability and overall value. Second, the ability to participate in foreign currency markets allows MNCs to hedge against currency risks, minimizing potential losses due to fluctuations in exchange rates.

Third, exposure to international financial markets provides opportunities for MNCs to diversify their investments, reducing risks associated with concentrating assets in one market.

Lastly, adherence to global financial regulations and standards can enhance an MNC's reputation, making it more attractive to investors and increasing its overall value.

Learn more about Multinational Corporations.

brainly.com/question/14249780

#SPJ11

suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. answer the following question on the basis of this information. refer to the information. the level of productivity is: group of answer choices 10. 5. 20. 2.

Answers

The level of productivity in this economy can be calculated by dividing the real domestic output by the quantity of inputs. Therefore, the level of productivity is 20/10 = 2.

The level of productivity can be measured by the ratio of output to input. In this case, the ratio of output to input is 20/10 = 2. Therefore, the level of productivity is 2 units of output per unit of input. The price of the input is not relevant in this calculation. It only affects the cost of production, but not the level of productivity.

Read more about economy here:https://brainly.com/question/17996535

#SPJ11

The Pelton Company produces printed books. When the company records the payment of rent on a printing machine, it would record [ Select) and [Select)

Answers

When the Pelton Company records the payment of rent on a printing machine, it would record the transaction as an expense in the income statement and as a liability in the balance sheet.

In the income statement, the payment of rent would be recorded as an expense because it represents a cost incurred by the company in the course of its operations. This expense would be recognized in the period in which it is incurred, regardless of whether it is paid in cash or on credit.

In the balance sheet, the payment of rent would be recorded as a liability because the company has an obligation to pay the rent in the future. Specifically, the rent payment would be recorded as a current liability if it is due within the next year, or as a long-term liability if it is due beyond the next year.

Learn more about record payment:https://brainly.com/question/29816288

#SPJ11

Nursing home costs are on the rise as consumeraffairs.com reports in its quarterly newsletter. The average cost is around $194 a day with an average length of stay of 2.7 years.
Calculate the cost of the average nursing home stay.

Answers

Approximately $191,147 is the cost of the average nursing home stay.

To calculate the cost of the average nursing home stay using the information provided:

1. The average cost per day is $194.
2. The average length of stay is 2.7 years.

First, we need to find the number of days in 2.7 years. Since there are approximately 365 days in a year:

3. Multiply the number of years (2.7) by the number of days in a year (365):
2.7 years * 365 days/year ≈ 985.5 days

Now that we have the number of days in the average nursing home stay, we can calculate the total cost:

4. Multiply the number of days (985.5) by the average cost per day ($194):
985.5 days * $194/day ≈ $191,147

So, the cost of the average nursing home stay is approximately $191,147.

More on cost: https://brainly.com/question/18296447

#SPJ11

1. ____is the creation of emotional wants and desires, as opposed to only addressing needs, in the mind of the consumer. A. Dependence Effect B. Duty Effort C Upscale sementation D. Downscale segmentation

Answers

Upscale segmentation is the creation of emotional wants and desires, as opposed to only addressing needs, in the mind of the consumer.

This technique involves targeting consumers who are willing to pay a premium for higher quality products or services that align with their lifestyle and values. Companies that use upscale segmentation often focus on creating a luxurious or exclusive image for their brand, which can increase the perceived value of their offerings.

By tapping into consumers' emotions and aspirations, upscale segmentation can drive sales and build brand loyalty. However, it can also be criticized for encouraging materialism and contributing to income inequality.

For more such questions on segmentation, click on:

https://brainly.com/question/15086849

#SPJ11

the need for self sufficiency reflects the moving ___ people trend.

Answers

The need for self-sufficiency reflects the moving towards independence trend among people.

Self-sufficiency is the state of being able to satisfy one's basic requirements and wants without the assistance of outside sources. It comprises having the capacity to produce or acquire the goods, services, and resources needed for one's survival and well-being, either on one's own or with community support. Self-sufficiency can be achieved in a number of ways, such as growing your own food, raising livestock, producing your own energy, and creating goods for sale or personal use. It requires developing knowledge and experience in a variety of fields, including construction, agriculture, and energy production.

To learn more about self sufficiency refer here:

https://brainly.com/question/14188475

#SPJ11

Current Attempt in Progress On January 2, 2020, Perseus Corp. issued 10-year convertible bonds at 105. During 2021, all the bonds were converted into common shares having a total value equal to the total face amount of the bonds. At conversion, the market price of Perseus's common shares was 50% above its average carrying value. Perseus adheres to IFRS. On conversion, Perseus would credit the Common Shares account with the par value of the bonds plus the balance in the Contributed Surplus account. o the carrying value of the bonds plus the balance in the Contributed Surplus account. o the carrying value of the bonds minus the balance in the Contributed Surplus account o the market value of the bonds plus the balance in the Contributed Surplus account.

Answers

On conversion, Perseus would credit the Common Shares account with the carrying value of the bonds plus the balance in the Contributed Surplus account.

Detailed explanation:

This is because, under IFRS, when convertible bonds are converted into common shares, the carrying value of the bonds is transferred to the Common Shares account. The balance in the Contributed Surplus account is also credited as it represents the premium paid by investors for the convertible feature of the bonds. Therefore, the total amount credited to the Common Shares account would be the carrying value of the bonds plus the balance in the Contributed Surplus account. The market value of the bonds is not relevant in this scenario as the bonds have already been converted into common shares.

Learn more about bonds here:

"IFRS conversion of convertible bonds into common shares"    https://brainly.com/question/14958861

#SPJ11

assume that one laborer produces 6 units of output, two laborers produce 14 units, three produce 20 units, and four produce 24 units. if the cost is $20 per unit of labor and fixed costs are $100, what is the average total cost of producing 14 units of output?

Answers

To calculate the average total cost of producing 14 units of output, we need to first determine how many laborers are needed to produce that amount.
From the given information, we can see that two laborers produce 14 units of output.
The total cost of producing 14 units of output is calculated by multiplying the cost per unit of labor ($20) by the number of laborers needed to produce the output (2) and adding the fixed costs ($100).
So the total cost is:
(2 laborers x 6 units each x $20 per unit of labor) + $100 = $260
To calculate the average total cost per unit, we divide the total cost by the number of units produced:
$260 / 14 units = $18.57
Therefore, the average total cost of producing 14 units of output is $18.57.

Read more about average total cost here:https://brainly.com/question/29509552

#SPJ11

The result of rent control is that __________ for housing exceeds ___________ and some potential renters may be willing to pay higher prices than the artificially low rent controlled amount.
Select the correct answer below:
a. supply; demand
b. demand; supply

Answers

Answer:

a. Demand; Supply

Explanation:

Rent restriction can lead to a situation in which housing supply falls short of demand. This is due to the fact that rent control often sets rents lower than the market rate, which might disincentivize landlords from renting out their properties or investing in new housing. As a result, the available housing supply may be constrained, resulting in a scarcity of inexpensive housing options. Despite the artificially cheap rents, there may be potential renters prepared to pay higher prices but unable to get accommodation due to a lack of availability. This can lead to increased tenant competition and potentially higher pricing for individuals who are unable to find rent-controlled accommodation.

The direct capitalization approach to real estate income valuation estimates a property's value as a multiple of the properties first year potential gross income (PGI)
False True

Answers

The given statement "The direct capitalization approach to real estate income valuation estimates a property's value as a multiple of the properties first year potential gross income (PGI)" is true because of its limitations and should be used in conjunction with other valuation methods to obtain a more accurate estimate of a property's true value.

The direct capitalization approach is a widely used method for income evaluation in real estate.

The capitalization rate is a percentage that represents the rate of return an investor expects to receive on a real estate investment. It is derived from comparable sales data and takes into account factors such as the property's location, condition, and potential for future growth

The direct capitalization approach is a relatively simple and straightforward method for income evaluation, but it has its limitations. It assumes that the PGI will remain constant over time and that the market capitalization rate is accurate. In reality, both of these factors can fluctuate, leading to a potential over- or under-valuation of the property.

To know more about capitalization here

https://brainly.com/question/7672602

#SPJ4

How to calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year?

Answers

To calculate the predetermined overhead rate, you'll need to divide the estimated total overhead costs by the estimated number of units to be produced in the first four months of the year.



1. Estimate the total overhead costs for the first four months of the year. This might include indirect costs such as utilities, rent, and salaries of indirect labor. Add these costs together to get the total overhead costs.

2. Estimate the number of units of product you expect to produce in the first four months of the year. This can be based on previous production levels, market demand, or any other relevant factors.

3. Divide the total overhead costs by the number of units to be produced. The result is the predetermined overhead rate per unit.

Example: If the total overhead costs are estimated to be $200,000 and you expect to produce 10,000 units in the first four months of the year, the predetermined overhead rate would be:

$200,000 / 10,000 units = $20 per unit

This means that $20 of overhead costs will be allocated to each unit of product produced during the first four months of the year.

To know more about overhead costs visit:

brainly.com/question/14811739

#SPJ11

true or false: credit is defined as an arrangement to receive cash, goods, or services now with payment in the future.

Answers

An arrangement to accept money, goods, or services now with payment later is referred to as a credit True.

Does a contract consist of your agreement to pay now for future products and services?

A promise to pay is a bond. It is an agreement to exchange paying something in the future for something now.

Is the term "credit" used to describe any circumstance in which someone receives products, services, or money?

Any circumstance in which products, services, or money are obtained in exchange for a promise to pay back at a later time is referred to as a credit situation. Repeated usage of credit is permitted on credit cards as long as the minimum payment is made each month.

To Know more about payment

https://brainly.com/question/15136793

#SPJ1

What term refers to a situation in which a few individuals dominate the ideation and decision making of the group? O Social loafing O Minority domination O Cross-training Groupthink

Answers

The term is "minority domination." It can lead to poor decision-making and groupthink and can be prevented by encouraging dissent and collaboration.

The term that refers to a situation in which a few individuals dominate the ideation and selection-making of the organization is "minority domination."

In this scenario, a small range of people exerts a disproportionate quantity of an effect on the institution's decision-making system, frequently main to decisions that may not reflect the pursuits or opinions of the majority.

Minority domination can get up for a ramification of reasons, inclusive of the electricity dynamics inside the organization or the personalities and conversation types of the people concerned.

Minority domination can have poor consequences for the group's performance and consequences. It is able to lead to groupthink, a phenomenon where the organization becomes overly centered on keeping consensus and disregards alternative viewpoints or statistics.

This can result in terrible decision-making and a loss of innovation. To save you from minority domination and groupthink, it's far crucial to foster surroundings in which all participants experience relaxed sharing of their thoughts and critiques, and where dissent is recommended and valued.

Additionally, go-schooling and collaboration can assist distribute know-how and expertise throughout the institution, reducing the reliance on some individuals for decision-making.

Learn more about minority domination at

brainly.com/question/14849950

#SPJ4

Suppose we are in an economy with rich households and poor households. Rich and poor households have different consumption functions, with 3 = 100+ (y poor 5 - I poor) Crich = 100+ (Yrich – Trich) where Yrich ypoor are the incomes of rich and poor households and Trich, Tpoor are the taxes faced by rich and poor households. We also have I = 200, G = 100, T = Tpor + Trich = 100. Closing out the model, Y =C+I+G = cpoor + Crich +I+G a Suppose that ypoor = Yrich (in other words, the total income of poor households is equal to total income of rich households.) Supposing further that Trich = Tpoor = 50, calculate equilibrium output Y. b Now suppose that Trich = 40, Tpoor = 60. What is equilibrium output now? c How can the government increase output without changing the deficit (hint: think about the difference between output in b and output in c.) d Now assume that Trich = 40, Tpoor = 60, but instead of output being split equally between rich and poor households, y poor = {y, Yrich = y. What does this model predict about the impact of inequality on output? Explain the economic intuition.

Answers

a) Equilibrium output Y when ypoor = Yrich and Trich = Tpoor = 50 is Y = 370.

b) Equilibrium output Y when Trich = 40, Tpoor = 60 is Y = 380.

a) In the initial scenario, with ypoor = Yrich and Trich = Tpoor = 50, we can calculate equilibrium output Y by substituting the given values into the consumption functions and solving for Y. Plugging in ypoor = Yrich = Y and Trich = Tpoor = 50, we get Y = cpoor + Crich + I + G = (100 + (Y - 50))/5 + (100 + (Y - 50)) + 200 + 100 = 370.

b) In the second scenario, with Trich = 40 and Tpoor = 60, we can follow the same process to calculate equilibrium output Y, plugging in the given values into the consumption functions and solving for Y. We get Y = cpoor + Crich + I + G = (100 + (Y - 60))/5 + (100 + (Y - 40)) + 200 + 100 = 380.

c) To increase output without changing the deficit, the government can increase government spending (G) or decrease taxes (Trich and Tpoor) in a way that keeps the overall deficit unchanged, which would shift the consumption functions upwards and increase equilibrium output.

d) If ypoor is a fraction of Yrich, with Yrich = y and ypoor = {y, the model predicts that increasing income inequality (where ypoor < Yrich) would lead to a higher equilibrium output, as the consumption function for rich households (Crich) is higher than the consumption function for poor households (Cpoor).

This is because rich households tend to spend a higher proportion of their income, resulting in higher aggregate demand and output.

For more questions like Function click the link below:

https://brainly.com/question/16008229

#SPJ11

Consider the following data for Nike Inc.: In 2009 it had $19,250 million in sales with a 10% growth rate in 2010, but then slows by 1% to the long-run growth rate of 5% by 2015. Nike expects EBIT to be 10% of sales, increases in net working capital requirements to be 10% of any increases in sales, and capital expenditures to equal depreciation expenses. Nike also has $2,300 million in cash, 532 million in debt, 486 million shares outstanding, a tax rate of 24%, and a weighted average cost of capital of 10%. a. Suppose you believe Nike's initial revenue growth rate will be between 7% and 11% (with growth slowing linearly to 5% by year 2015).

Answers

initial growth rate of 7%, we can calculate the estimated sales growth rates for each year is 2010: 10%; 2011: 9.5%; 2012: 9%; 2013: 8.5%; 2014: 8%; 2015: 5%.

If we assume that Nike's initial revenue growth rate will be between 7% and 11% (with growth slowing linearly to 5% by year 2015), we can use this information to estimate Nike's future financial performance.

Based on this assumption, we can use a simple linear interpolation to estimate Nike's sales growth rate for each year between 2010 and 2015.

Assuming an initial growth rate of 7%, we can calculate the estimated sales growth rates for each year as follows:

2010: 10%2011: 9.5%2012: 9%2013: 8.5%2014: 8%2015: 5%

Similarly, assuming an initial growth rate of 11%, we can calculate the estimated sales growth rates for each year as follows:

2010: 10%2011: 10.25%2012: 10.5%2013: 10.75%2014: 11%2015: 5%

These estimates can then be used to project Nike's future financial performance, taking into account the other assumptions provided (EBIT to be 10% of sales, net working capital requirements to be 10% of any increases in sales, and capital expenditures to equal depreciation expenses).

Learn more about growth rate: brainly.com/question/25849702

#SPJ11

which of the following will shift the aggregate demand curve in the direction shown in the diagram above? group of answer choices a decrease in the monetary base a decrease in the money supply a decrease in the overnight interbank lending rate the sale of bonds to the private sector by the central bank an increase in the required reserve ratio

Answers

Selling bonds to the private sector by the central bank will shift the aggregate demand curve to the left, decreasing money supply. so, the correct answer is B).

The aggregate demand curve represents the relationship between the price level and the quantity of goods and services demanded in an economy. A decrease in the monetary base or the money supply would decrease the aggregate demand, shifting the curve to the left.

However, a decrease in the overnight interbank lending rate or the sale of bonds to the private sector by the central bank would increase the money supply, increasing the aggregate demand and shifting the curve to the right.

On the other hand, an increase in the required reserve ratio would decrease the money supply and shift the aggregate demand curve to the left. Therefore, the correct answer is (B) a decrease in the money supply.

To know more about demand curve:

https://brainly.com/question/30550686

#SPJ4

houston company borrowed $20,000 from dallas company on march 1, year 1. houston is to repay the principal and interest on march 1, year 2. the interest rate is 8%. if the year-end adjustment is properly recorded, what will be the effects of the accrual on houston's year 1 financial statements? group of answer choices

Answers

Houston Company will record the following effects on their Year 1 financial statements:

1. Increase Interest Expense by $1,333.33, reducing net income in the income statement.

2. Increase Interest Payable (a liability) by $1,333.33 in the balance sheet, reflecting the accrued interest obligation at year-end.

How to determine the effects of the accrual

When Houston Company borrowed $20,000 from Dallas Company on March 1, Year 1, they agreed to repay the principal and interest on March 1, Year 2, at an interest rate of 8%.

To determine the effects of the accrual on Houston's Year 1 financial statements, we must first calculate the interest expense for the year.

Interest Expense = Principal x Interest Rate x Time

Interest Expense = $20,000 x 0.08 x (10/12)

Interest Expense = $1,333.33

Learn more about interest payable at

https://brainly.com/question/28584374

#SPJ11

Portfolio risk can be broken down into two types. Diversifiable risk is that part of a security's risk associated with random events. It can be eliminated by properdiversification and is also known as company-specific risk. On the other hand, market risk is the risk that remains in a portfolio after diversification haseliminated all company-specific risk. Standard deviation is not a good measure of risk when a stock is held in a portfolio. A stock's relevant risk is the risk thatremains once a stock is in a diversified portfolio. Its contribution to the portfolio's market risk is measured by a stock's beta coefficientwhich shows theextent to which a given stock's returns move up and down with the stock market. An average stock's beta is -Select-1 because an average-risk stock is one1 is considered to have high risk, while a stock with betathat tends to move up and down in step with the general market. A stock with a beta equal toless than1 is considered to have low risk.Quantitative Problem: You are holding a portfolio with the following investments and betas:Stock. . Dollar investment BetaA. $300,000. 1.25B. 150,000. 1.50C. 300,000. 0.85D. 250,000. -0.25Total investment. $1,000,000The market's required return is 10% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round youranswer to three decimal places.

Answers

The portfolio's required return is 9.79%, which compensates for the market risk of the portfolio. Actual returns below this level suggest investing in risk-free assets, while returns above it compensate for market risk.

The portfolio's required return is determined by the weighted average of the individual investments' required returns, where the weights are the dollar investments in each stock. To calculate the required return for each stock, we first need to calculate the stock's expected return using the Capital Asset Pricing Model (CAPM). The CAPM formula is:Expected return = risk-free rate + beta x (market return - risk-free rate)Using the given information, we can calculate the expected return for each stock:Stock A: 4% + 1.25 x (10% - 4%) = 14%Stock B: 4% + 1.50 x (10% - 4%) = 16%Stock C: 4% + 0.85 x (10% - 4%) = 10.1%Stock D: 4% + -0.25 x (10% - 4%) = 2%Next, we need to calculate the weighted average expected return for the portfolio:Weighted expected return = (Dollar investment A x Expected return A) + (Dollar investment B x Expected return B) + (Dollar investment C x Expected return C) + (Dollar investment D x Expected return D) / Total investmentWeighted expected return = ($300,000 x 14%) + ($150,000 x 16%) + ($300,000 x 10.1%) + ($250,000 x 2%) / $1,000,000 = 9.79%Therefore, the portfolio's required return is 9.79%. This is the minimum return required to compensate for the portfolio's market risk. If the actual return is below this level, investors would be better off investing in a risk-free asset like treasury bonds. Conversely, if the actual return is above this level, investors are being compensated for the portfolio's market risk.

For more such question on portfolio's

https://brainly.com/question/29518759

#SPJ11

l Suppose that TurboLight Co., a renewable energy startup, currently has earnings of $10 per share and that Megan anticipates the earnings per share to grow by 4 percent per year. Using a mean industry PE ratio of 18 and the expected annual growth rate on the firm's existing earnings, the estimated stock price in three years is: $184.26 $196.41 $202.48 $218.68 Suppose TurboLight Co. is expected to pay a dividend of $4 per share over the next three years, that Megan's required rate of return is 14 percent, and that she plans to sell the stock at the end of the three-year time period. Under these circumstances, using the adjusted dividend discount model, the value of the stock today is: $124.07 per share $131.36 per share $145.96 per share O $156.18 per share

Answers

Under these circumstances, using the adjusted dividend discount model, the value of the stock today is: $131.36 per share. (Option B)

What is the explanation for the above response?


To calculate the estimated stock price in three years using the price-to-earnings (P/E) ratio approach, we first need to calculate the earnings per share (EPS) in three years:

EPS in 3 years = EPS x (1 + growth rate)^3

EPS in 3 years = $10 x (1 + 0.04)^3

EPS in 3 years = $11.26

Next, we can use the P/E ratio of 18 to estimate the future stock price:

Estimated stock price in 3 years = P/E ratio x EPS in 3 years

Estimated stock price in 3 years = 18 x $11.26

Estimated stock price in 3 years = $202.48

Therefore, the answer is $202.48.

To calculate the value of the stock today using the adjusted dividend discount model, we need to calculate the present value of the expected future dividends and the expected stock price in three years.

The present value of the expected future dividends can be calculated using the following formula:

PV of expected future dividends = D1 / (1 + r)^1 + D2 / (1 + r)^2 + D3 / (1 + r)^3

where D1, D2, and D3 are the expected dividends in years 1, 2, and 3, respectively, r is the required rate of return, and PV is the present value.

In this case, the expected dividends are $4 per share for each of the next three years, so:

PV of expected future dividends = $4 / (1 + 0.14)^1 + $4 / (1 + 0.14)^2 + $4 / (1 + 0.14)^3

PV of expected future dividends = $3.51

Next, we need to calculate the expected stock price in three years using the P/E ratio approach as we did earlier:

Estimated stock price in 3 years = $202.48

Finally, we can use the following formula to calculate the value of the stock today:

Stock value today = PV of expected future dividends + PV of expected stock price in 3 years / (1 + r)^3

Stock value today = $3.51 + $202.48 / (1 + 0.14)^3

Stock value today = $131.36 per share

Therefore, the answer is $131.36 per share.

Learn more about dividend at:

https://brainly.com/question/13057646

#SPJ1

a work system has five stations that have process times of 5, 9, 4, 9, and 8. what is the bottleneck time? group of answer choices 4 7 35 9 18 flag question: question 4

Answers

The amount of time needed for the slowest or least effective station to do its work system is known as the bottleneck time in a production process. Thus, the response is 9. Option 4 is Correct.

In project management and manufacturing, this means that its restricted capacity lowers the chain's overall capacity. A bottleneck is a congested area in a production system that causes the system to halt or move very slowly. Temporary bottlenecks are frequently brought on by workers who are absent due to illness or vacation.

The five stations' processing periods in this instance are 5, 9, 4, 9, and 8. The time needed for the third and fifth stations to do their jobs, or 9, is the bottleneck time. Option 4 is Correct.

Learn more about work system visit: brainly.com/question/31478075

#SPJ4

Correct Question:

A work system has five stations that have process times of 5, 9, 4, 9, and 8. what is the bottleneck time? group of answer choices

1. 4

2. 7

3. 35

4. 9

5. 18

which of the following is a characteristic of a monopoly? select the correct answer below:there are no barriers to entry in an industry. a firm is one of many firms in its industry. a firm has very little market power. a single firm produces all of the output in the market.

Answers

A characteristic of a monopoly is that a single firm produces all of the output in the market. Option d is answer.

A monopoly is a market structure in which there is only one seller of a product or service that has no close substitutes. As a result, the monopolist has significant market power and can set the price of the product or service at a level that maximizes its profit.

Since there are no close substitutes for the product or service offered by the monopolist, consumers have no choice but to pay the monopolist's price if they want to purchase the product or service. This lack of competition allows the monopolist to produce all of the output in the market, and there are no other firms that can enter the market to compete with the monopolist.

Therefore, the correct answer is d: a single firm produces all of the output in the market.

You can learn more about monopoly at

https://brainly.com/question/7217942

#SPJ11

Unemployment insurance has an important macroeconomic effect because it ______
increases aggregate supply increases aggregate demand decreases aggregate demand decrease aggregate supply

Answers

Unemployment insurance has an important macroeconomic effect because it increases aggregate demand. So, correct option is B.

When workers become unemployed, they may reduce their consumption, leading to a decrease in aggregate demand. However, unemployment insurance can offset this decrease by providing financial support to unemployed workers, allowing them to maintain their consumption levels and support demand in the economy.

Unemployment insurance also has a multiplier effect, where the income received by unemployed workers is spent on goods and services, generating additional demand and economic activity. This increased demand can lead to increased production and employment, as firms may need to hire more workers to meet the higher demand.

Moreover, unemployment insurance can also stabilize the economy during times of economic downturn by mitigating the negative impact of cyclical unemployment. By providing a safety net for workers, unemployment insurance can reduce the severity of recessions and shorten their duration.

Overall, unemployment insurance has a positive impact on the economy by supporting demand and stabilizing the labor market during economic downturns.

So, correct option is B.

To learn more about macroeconomic click on,

https://brainly.com/question/31416757

#SPJ4

ABC
process 1,000 units at a costs of $40,000, of which $10,000 is
fixed and $30,000 is variable. To the nearest whole dollar, what is
the total cost at 2,000 units?

Answers

Answer: $70,000

Explanation:
Given: Total Variable cost = $30,000

          Total units produced= 1000

          Total Fixed cost= $10,000


Step 1: Determine the variable cost per unit.
Variable cost = Total variable cost / Number of units
Variable cost / unit = $30,000 / 1,000 units
Variable cost/ unit= $30 per unit

Step 2: Calculate the variable cost for 2,000 units.

(Considering that variable cost/unit remains constant)
Variable cost for 2,000 units = Variable cost per unit * 2,000 units
Variable cost for 2,000 units = $30 * 2,000 units
Variable cost for 2,000 units = $60,000

Step 3: Add the fixed cost to the variable cost for 2,000 units to get the total cost.
Total cost = Fixed cost + Variable cost for 2,000 units
Total cost = $10,000 + $60,000
Total cost = $70,000

To the nearest whole dollar, the total cost at 2,000 units is $70,000.

Learn more about fixed and variable costs: https//brainly.com/question/31469746

#SPJ11

if an industry has low barriers to entry for firms, what are the implications for long run economic profits and losses for that industry?

Answers

The implications for long run economic profits and losses for that industry is that (a) In the long run, firms will make normal profit because of the low barriers to entry and exit.

What is Economic Profit?

A company's economic profit is the difference between its sales income and its explicit production expenses, as well as any opportunity.

Economic profit is calculated as total revenue minus (total explicit costs plus total implicit costs). As an illustration, implicit costs can be the difference between the market price a corporation could sell a resource for and the cost of employing that resource. A forest of trees is owned by a paper firm. They clear forests in order to produce paper.

Economic profit is the revenue generated by an entity after both explicit and implicit costs have been taken into account. When economic profit is zero or when revenues are equal to both explicit and implicit costs, normal profit is achieved.

Learn more about Economic Profit:

https://brainly.com/question/15867127

#SPJ1

Complete Question: If an industry has low barriers to entry for firms, what are the implications for long run economic profits and losses for that industry?

a. In the long run, firms will make normal profit because of the low barriers to entry and exit.

b.  In the long run, firms will be able to sustain economic profit because of the low barriers to entry and exit.

c.  In the long run, firms will still be able to produce while sustaining economic loss because of the low barriers to entry and exit.

d. none of the above.

The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inrn has 50 rooms that it rents at $ 75 a night. Operating costs are as follows.salaries $ 5,300 per month utilities $ 1,100 per month depreciation $ 1,000 per month maintenance $ 5,230 per month maid service $ 15 per room other costs $ 30 per roomDetermine the inn's break-even point in number of rented rooms per month. Break-even point _______ rooms

Answers

The break-even point "for Palmer Acres Inn during its off-peak season is approximately 14 rented" rooms per night.

To determine the break-even point for Palmer Acres Inn during its off-peak season, we will first calculate the fixed costs and variable costs.

Fixed Costs (per month):
Salaries = $5,300
Utilities = $1,100
Depreciation = $1,000
Maintenance = $5,230
Total Fixed Costs = $5,300 + $1,100 + $1,000 + $5,230 = $12,630

Variable Costs (per room):
Maid Service = $15
Other Costs = $30
Total Variable Costs = $15 + $30 = $45

The break-even point can be calculated using the formula:
Break-Even Point (in rooms) = Total Fixed Costs / (Price per room - Total Variable Costs per room)

Plugging in the values:
Break-Even Point = $12,630 / ($75 - $45)

Break-Even Point = $12,630 / $30
Break-Even Point ≈ 421 rooms

However, this is the break-even point for the total number of rooms rented during a month. To find the break-even point in terms of rooms rented per night, we can divide this number by the number of days in a month. Assuming an average of 30 days per month:

Break-Even Point (per night) ≈ 421 rooms / 30 days
Break-Even Point (per night) ≈ 14 rooms

For more such questions on rented

brainly.com/question/29343421

#SPJ11

based on the job description, which of these personality traits would likely be the best predictor of good job performance for the job of warehouse worker? O High extraversion O Low openness O Low conscientiousness O Low agreeableness O High authoritarianism

Answers

Based on the job description of a warehouse worker, the personality trait that would likely be the best predictor of good job performance is low openness.

A warehouse worker's job requires following standard procedures and protocols, handling goods efficiently, and paying attention to details. People with low openness are typically more practical, focused, and detail-oriented, making them well-suited for this type of work. In contrast, high openness individuals tend to be more creative, innovative, and interested in new experiences, which may not be as important for this particular job.

High extraversion: This personality trait is often associated with being outgoing, talkative, and sociable. While these traits might be helpful in some job settings (such as sales or customer service), they may not be as important for a warehouse worker.

Low openness: This personality trait is characterized by a preference for routine and familiarity. While some aspects of a warehouse worker's job might be repetitive, there may be a need to adapt to new tasks and challenges as they arise. Therefore, being low in openness may not be as beneficial for this job.

Low conscientiousness: This personality trait is often associated with being careless or disorganized. However, for a warehouse worker, being diligent and detail-oriented is crucial for tasks such as inventory management and order fulfillment.

Low agreeableness: This personality trait is characterized by a tendency to be argumentative or uncooperative. In a team-based job like warehouse work, it's important to be able to work collaboratively and communicate effectively with others.

High authoritarianism: This personality trait is characterized by a preference for strict rules and authority figures. While there may be some degree of hierarchy in a warehouse work setting, being too focused on authority and rules may not be as beneficial as being able to work independently and take initiative when needed.

Learn more about personal traits here:

https://brainly.com/question/13346581

#SPJ11

instead of defining a market and counting up total sales, what are antitrust regulators looking at today when determining whether to allow a merger or not? select the correct answer below: hhi four-firm concentration ratio industry competition innovation

Answers

Industry competition is one of the antitrust regulators looking at today when determining whether to allow a merger or not.

What are antitrust regulators?

Antitrust is a group of laws established to regulate business practices in order to insure that fair competition occurs in an open-request frugality for the benefit of consumers. Antitrust is a regulation of business conduct and is a part of competition law in the United States. Antitrust laws regulate the attention of good power to help companies from price colluding or creating monopolies. Proponents of antitrust laws argue that they keep consumer prices lower and foster invention through increased competition. The FTC and the U.S. Department of Justice( DOJ) Antitrust Division apply the civil antitrust laws. Common exemplifications of these violations include" Price fixing" which consists of any agreement by contending merchandisers that establishes an agreed price or else determines how the price will be set among those merchandisers. The agreement to fix the price may do at the noncommercial or retail position.

To learn more about antitrust regulators click on the given link:

https://brainly.com/question/13800256

#SPJ1

Other Questions
Dantone, Inc. provides the following information: Profit margin ratio Asset turnover ratio Net sales Target rate of return 6% 2 times $450,000 9% Calculate the return on investment. O A. 3% OB. 12% O C. 54% OD. 15% 4. you bought a $1,000 face value citicorp callable bond in january 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. it has a coupon rate of 5.2%/year. a. excluding interest, how much would you receive if citicorp called the bond in 2029? b. in a few words, when is citicorp likely to call the bond? according to le chtelier's principle, heat applied to an exothermic reaction will shift the reaction towards choose... . heat applied to an endothermic reaction will shift the reaction towards Find the area of the composite figure below.Question 5 options:40 square units32.5 square units24 square units43 square units who among the following persons has the highest need for iron? a female who is 82 years olda female who is 22 years old a female who is 42 years old a female who is 62 years old list the seven principles that should be applied when treating any type of wound quizlet centripetal acceleration is alwaysmultiple select question.in the same direction as the velocity.perpendicular to the tangential velocity.in the opposite direction as the velocity.pointed outward from the center of the curve.toward the center of the curve. write java code that uses a for statement to sum the numbers from 1 through 50. display the total sum to the console. Which of the following is MOST likely a result of arson?The fire will be put out quickly.Territory around an established fire would be cleared.More structures will be destroyed than in other kinds of fires.Criminal charges will be filed against the person who started the fire. Workers who drive to work in a city have a one in three chance of experiencing traffic delays.How can a simulation be set up to represent the event? URGENT HELP IS NEEDED!! WILL MARK BRAINLIEST!!!Write a real-world situation for the function f(x) = 3(1.06x) + 2. Be sure to identify all key features of the function as what they represent in your situation. Within the planetary scale atmospheric circulation pattern, areas with the low pressure belts tend to have which type of climate? a. cold b. wet c. hot d. dry You have a total swap agreement with an investment bank for aportfolio valued at $5 billion for a cost of 2% a month. Theportfolio is valued at $6 billion at the end of one year. How much did you make?1. -$20 million2. -$200 million3. $1 billion.4. $800 million. Say's law says supply creates its own demand. supply will equal demand. supply and demand create GDP. demand creates its own supply. The view held by classical economists is that the economy will operate with maximum efficiency within the production possibilities curve. with no unemployment on the production possibilities curve. without constraints on the production possibilities curve. at full employment on the production possibilities curve. Keynes's view is that the economy can operate with some unemployment inside the production possibilities curve. with no unemployment on the production possibilities curve. at full employment on the production possibilities curve. without constraints on the production possibilities curve. A population grows according to the equation dP/dt= kP , where k is a constant and t is measured in years. If the population triples every 15 years, what is the value of k? express the number as a ratio of integers. 0.29 = 0.29292929 1.) Trench warfare turned World War I into the war of attrition in which warring parties lost tens of thousands of soldiers in never ending clashes to break the enemy line.TrueFalse2.) Woodrow Wilson insisted that American intervention in World War I was to make the United States safe from endemic European rivalries and animosity. It could be said that the United States intervened in World War I to teach European belligerents a lesson.TrueFalse3.) Many changes occurred in Europe as a result of World War I. Among them was the end to European colonialism. European countries suffered such a high number of causalities, that they could no longer afford to send soldiers to protect and maintain the colonies.TrueFalse4.) By the summer of 1918, it was apparent that the Allies' material advantage was finally coming to bear on the Germans. That material advantage included the vast war materiel that United States was able to supply to the Allies.TrueFalse5.) World War I left a powerful cultural legacy of disillusionment, as a generation of men had been sacrificed to no apparent end. Surviving soldiers were sicked by their participation in such useless slaughter.Select one:TrueFalse6.) Although Germany was subjected to many crippling provisions of the treaty of Versailles, from economic point of view, the most dangerous were the punitive reparations.TrueFalse7.) At the end of World War I, the allies forced upon Austro-Hungary to accept the responsibilities of starting World War I. After all, it was Austro-Hungary's overreaction after the assassination of Archduke Ferdinand that caused the war, the allies reasoned. This is known as Guilt Clause of the Versailles Treaty.Select one:TrueFalse8.) As a result of the Versailles Treaty, Czechoslovakia was created as an independent nation to check on Germans future ambitions in Eastern Europe.Select one:TrueFalse9.) The 'Fourteen Points" presented to the Versailles Peace Conference by the United States aim to ensure global peace.truefalse The company estimates that it can issue debt at a rate of ra = 11%, and its tax rate is 25%. It can issue preferred stock that pays a constant dividend of $4.00 per year at $45.00 per share. Also, its common stock currently sells for $37.00 per share; the next expected dividend, D1, is $4.25; and the dividend is expected to grow at a constant rate of 5% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. a. What is the cost of each of the capital components? Do not round intermediate calculations. Round your answers to two decimal places. Cost of debt: _____ %. Cost of preferred stock: _____ % Cost of retained earnings: _____ %. b. What is Adamson's WACC? Do not round Intermediate calculations. Round your answer to two decimal places. _____% You are writing a letter to the editor of the local paper trying to explain why the percentage change in real GDP is important. You want to illustrate the change in real GDP, but you only have two pieces of data.percentage change in nominal GDP: 10% percentage change in the price level: 4%Given this data, what is the percentage change in real GDP? what is the percent % imagine the market for cell phone service in a small town, and assume that the marginal cost of a firm adding more customers is zero. the demand schedule is shown in this table. at what price point does marginal cost equal marginal revenue for a firm in a competitive market? click or tap the row of the table that shows this price point.