Answer:
$6.55
Explanation:
A company sells two products. Product A sells for $10.00 per unit and Product B sells for $8.00 per unit. Variable costs are $3.00 for Product A and $2.50 for Product B. If the sales mix is 70% Product A and 30% Product B, the weighted average contribution margin is _____.
Step 1
Calculate Contribution per product = Selling Price - Variable Costs
Contribution for A = 10 - 3 = 7
Contribution for B = 8 - 2.5 = 5.5
Step 2
Multiply the Contribution per product by its sales mix
A = 7 x 70% = 4.9
B = 5.5 x 30% = 1.65
Step 3
Add up the weighted contribution margins for each product
Therefore the the weighted average contribution margin for both product is (4.9 + 1.65) = $6.55
Answer:
The correct answer is 10.48%.
Explanation:
According to the scenario, the given data are as follows:
Current price = $27
Expected dividend = $1.48
Growth rate = 5%
So, we can calculate the required return by using following formula:
Required return = (Expected Dividend ÷ Current Price ) + Growth rate
By putting the value in the formula,we get
Required return = ( $1.48 ÷ $27 ) + 5%
= 0.05481 + 0.05
= 0.10481 or 10.48%
Answer:
The correct answer is: Cash outflow in the operating section.
Explanation:
The statement of cash flows is the basic financial statement that shows the cash generated and used in the operation, investment and financing activities. The change of the different items in the Balance Sheet that affect cash must be determined for its implementation.
The purpose of the statement of cash flows has to do with informing the generation and use of cash and cash equivalents in relation to operation, financing and investment activities.
The objective of this statement is to present pertinent and concise information, relating to cash collections and disbursements of an economic entity during a period so that users of financial statements have additional elements to examine the entity's ability to generate future cash flows. effective, to assess the ability to meet its obligations, determine internal and external financing, analyze the changes presented in cash, and establish the differences between net income and collections and disbursements.
Answer:
The current value of the stock today is $42.90
Explanation:
P1 = $6 / 0.20 - 0.06
P1 = $6 / 0.14
P1 = $42.8571
P1 = $42.90
