You are an stock analyst hired to follow Jones Kenesyian Consulting (whose ticker is JK), the firm recently paid a dividend of $2 per share, and you expect JK to grow at 10% for the next 3 years afterwhich you make an assumption that it will grow at a constant rate of 5%. You required rate of return is 12%. What do you believe the intrisic value of the stock is today

Answers

Answer 1

Answer:

Price of stock today = $45.58

Explanation:

The price of a share can be calculated using the dividend valuation model  

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.  

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

Step 1 : PV of dividend from year 1 to 3

PV = D × (1+r)^-n

D- dividend payable in a particular year

r- required rate of return

n- year

Year                                      PV of Dividend

1              2 × 1.1^1 × 1.12^(-1) = 1.96

2             2 × 1.1^2× 1.12^(-2) = 1.93

3             2 × 1.1^3 × 1.12^9-3)= 1.89

Step 2 : PV of dividend from year 4 to infinity

PV (in year 3 terms) of dividend= 2 × 1.1^3× 1.05/(0.12-0.05) = 55.90

PV in year 0 terms = 55.90  × 1.12^(-3) = 39.789

Total present Value = 1.96 +1.93  +1.89  + 39.789= 45.58

Price of stock today = $45.58


Related Questions

Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 and $3,200 for the months of January and September. If we produced 1,200 and 600 units in these months, what was the variable cost per unit associated with the utilities bill

Answers

Answer:

Variable cost per unit= $4

Explanation:

Giving the following information:

We have determined that the highest and lowest bills were $5,600 and $3,200 for January and September. We produced 1,200 and 600 units in these months.

To calculate the variable cost per unit, we need to use the high-low method. We will use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,600 - 3,200) / (1,200 - 600)

Variable cost per unit= $4

Globus Autos sells a single product. 8 comma 3008,300 units were sold resulting in $ 84 comma 000$84,000 of sales​ revenue, $ 24 comma 000$24,000 of variable​ costs, and $ 18 comma 000$18,000 of fixed costs. If Globus reduces the selling price by $ 1.10$1.10 per​ unit, the new margin of safety​ is: (Round any intermedary calculations to the nearest​ cent.)

Answers

Answer:

$59,000

Explanation:

We will first determine the variable cost per unit

= $24,000/300

= $80

Contribution margin percentage =

$280 - ($80 - $1.10)/$280

= 0.72

= 72%

New break even point = $18,000/72%

= 25,000

Old break even point =

($280 - $80)/280

= 0.71

= 71%

= $18,000/71%

= $25,352

Margin of safety = $84,000 - $25,000

= $59,000

Colt Carriage Company offers guided​ horse-drawn carriage rides through historic Charleston comma South Carolina. The carriage business is highly regulated by the city. Colt Carriage Company has the following operating costs during​ April: LOADING...​(Click the icon to view the​ information.) During April​ (a month during peak​ season), Colt Carriage Company had 13 comma 500 passengers. Sixty percent of passengers were adults ​($23 ​fare) while 40​% were children ​($15 ​fare). Requirements 1. Prepare the​ company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 10​% in May. Which figures on the income statement would you expect to​ change, and by what percentage would they​ change? Which figures would remain the same as in​ April?

Answers

Answer:

1) Colt Carriage Company

Income Statement

For the month ended April 202x

Revenues:

Adults passengers $186,300Children $81,000                      Total revenues                                       $267,300

Variable costs:

City fees $26,730Souvenirs $7,425Brokerage fees $11,340Carriage drivers $52,650Total variable costs                                  $98,145

Contribution margin                                        $169,155

Period costs:

Depreciation $2,900Horse leases $48,000Marketing expenses $7,350Payroll expenses $7,600Total period costs                                  $65,850

Operating profit                                             $103,305

2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.

Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.

Explanation:

since the information is not complete, I looked it up:

Revenues

13,500 passengers:

8,100 x $23 = $186,300

5,400 x $15 = $81,000

total $267,300

variable costs:

fees paid to the city 10% of total revenue

souvenirs $0.55 per passenger

brokerage fees 60% of total tickets x $1.40

carriage drivers $3.90 per passenger

fixed costs:

depreciation $2,900

horse leases $48,000

marketing expenses $7,350

payroll expenses $7,600

With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?

Answers

Answer:

Income will decrease by $2,000,000.

Explanation:

Giving the following information:

Advertising increase= $50,000,000

Units increase= 10,000 units

Unit contribution margin= $4,800

To calculate the total effect on income, we need to use the following formula:

Effect on income= total contribution margin - increase in fixed costs

Effect on income= 10,000*4,800 - 50,000,000

Effect on income= $2,000,000 decrease

Income will decrease by $2,000,000.

If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is

Answers

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Sales volume for the current period +Desired ending inventory -Beginning inventory

Let plug in the formula

Number of units=7,000 units +400 units-400 units

Number of units=7,000 units

Therefore the number of units set forth in the production budget, representing total production for the current period is 7,000 units

In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. True or False?

Answers

The answer is True
Explanation: N/A

Q
In the Metropolis forecast example, we are using cash as a plug number. To keep the examis
simple, we assume that the cash is not sitting in an interest-bearing bank account. Imagine the
cash were in an interest-bearing account, meaning the company would earn interest revenue
based on the cash balance. How would this affect your forecast and forecasting process?

Answers

Answer:

Consider average cash balance that was at the end of previous month and estimate the current month average cash balance and add or less any major increment that makes the forecasting realistic.Use excel or other softwares for forecasting purposes as it automatically adjusts the worksheet if corrections or additions are included in the computation.

Explanation:

The interest earned would be calculated at the end of every day on the cash balance that the company holds in the interest-bearing bank account.

The cash balance would be adjusted to reflect realistic assumptions were made because unrealistic assumptions makes the forecasting unreasonable and meaningless. The first step is to take the previous month end average cash balance and add in it the current month average balance. This will give us the current month cash balance that will be based on realistic assumptions. Use the excel sheets to take affects of estimated cash and other factors that will change due to the change in the cash balances. Excel will take account of all the factors adjusted in the forecasting sheet and adjust these factor's effects within seconds.

The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by social engineering attacks that led to a loss of sensitive data. The security administrator instructs the marketing staff not to supply the USB pens due to which of the following?
A. The cost associated with distributing a large volume of the USB pens
B. The security costs associated with securing the USB drives over time
C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature

Answers

Answer: C. The security risks associated with combining USB drives and cell phones on a network

D. The risks associated with the large capacity of USB drives and their concealable nature

Explanation:

Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.

Another reason is due to the risks that are associated with the large capacity of USB drives and their concealable nature.

Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.

According to Twitter’s amended S-1 filed November 4, 2013, what were the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option?

Answers

Answer:

$1.62billion ; $1.82billion

Explanation:

According to  amended S-1 filed November 4, 2013, the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option is $1.62billion or approximately $1.86billion if the underwriters fully exercise their option to purchase additional stock. The standard initial public offering price is assumed to be $24 per share.

goes on to explain that the main reason for this offering is to optimize their financial flexibility and capitalization, as well as to make their common stock available to the public. Net proceeds from the offering would also be fully utilized in facilitating their working expenses as well as funding business and taxation expenses.

Suppose Emilio offers you $500 today or $X in 10 years. If the interest rate is 6 percent, then at what value of X would you be indifferent between the two options

Answers

This question is impossible and implausible

Who is Emilio? How do we know he'll be around in 10 years? IS he good for the money, or is it counterfeit? Are we adjusting for inflation? The dollar is worth more in Malaysia than the U.S., so where are we starting and where are we ending? There's just not enough data here.

The windshield division of fast car co. makes windshields for use in fast car's assembly division. the windshield division inncurs variable costs of 248 per windshield and has capacity to make 590000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year.

Required:
Assuming the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?

Answers

Answer and Explanation:
The possible transfer prices that could be used on transfers between the Windshield and Assembly divisions is $200 to $450.

Jervis sells $3,900 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction

Answers

Answer:

Dr cash                           $3783

Dr factoring fee expense  $177

Cr accounts receivable               $3900

Explanation:

The cash proceeds from the factoring arrangement would be 97% of the value of the receivables since 3% is the factoring fees expenses to be incurred.

Cash proceeds=$3900*97%=$ 3,783.00  

Factoring fees expense=$3,900.00-$3,783.00=$117

Cash account and factoring fees expense would be debited with $3783 and $117 respectively, while accounts receivable is credited with $3900

Many leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the design of the organization such as

Answers

Answer:

Inappropriate budgeting and control system

Explanation:

If there is no proper budgeting with respect to the revenues, expenses and also if there is no proper control than the implementation of the vision and strategies would become difficult due to which organization is not able to accomplish its goals and objective within a prescribed time

There should be proper structure of work by considering the budgeting and control system as if any organization would ignore this then they would lead to suffered high losses

Therefore as per the given scenario, the third option is correct

Answer:

inappropriate budgeting and control systems is the correct answer.

Explanation:

If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock?Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.Calculate the dividend payout ratio for 2020.Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date.Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.Calculate the times interest earned ratio for 2020 and 2019.

Answers

Answer:

Stock Price is $54.50

Cash Dividend per share $1.50

Dividend Yield 2.75%

Dividend payout ratio 27.46%

Days Sales in Receivable 38 days

Debt Ratio 68.29%

Debt/equity ratio 1.57

Interest earned ratio 3.16 times

Explanation:

1. Market price = Price to earning ratio * Earning per share

Earnings per share = Net Income / Average number of shares outstanding

Earnings per share : 233 / 42.7 = 5.45

Market price per share : 10 * 5.45 = 54.50

2. Dividend per share : Dividend paid / number of shares outstanding

DPS : 64 / 42.7 = 1.50

3. Dividend Yield : Dividend per share / Stock Price share

Dividend Yield : 1.50 / 54.50

4. Dividend Payout ratio : Total Dividend paid / Net Income

Dividend Payout ratio : 64 / 233 = 27.46%

5. Day Receivale : (Average Receivable / Sales ) * 365

Days Receivables : 322/ 3064 * 365 = 38 days

6. Debt Ratio : Total Liabilities / Total Assets

Debt ratio : 2194 / 3215 = 68.29%

7. Debt/ equity ratio : Debt / Equity

Debt/Equity : 1603 / 1021 = 1.57

8. Interest Earned Ratio : Earning before Interest and Tax / Interest Expense

Interest Earned Ratio : 310 / 98 = 3.16 times

This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland

Answers

Answer:

Unemployment rate= 0.13= 13%

Explanation:

Giving the following information:

Of these 95 individuals, 75 are in the labor force and 65 are employed.

To calculate the unemployment rate, we need to use the following formula:

Unemployment rate= unmeployed population / labor force

Unemployment rate= 10/75

Unemployment rate= 0.13

A selection model in which an applicant moves on to the next stage in the process on the condition that she or he satisfies a score criterion on previous parts of the process is referred to as a _____ model. Group of answer choices

Answers

Answer:

multiple hurdle

Explanation:

The term is described in the question is known as a multiple hurdle model. In this specific approach, the individual applying needs to pass each step in the selection process in order to continue to the next one. Failure at any of the steps results in an automatic disqualification of the applicant from further consideration. Each step needs to be passed by meeting the minimum score that has been pre-set before starting the step.

Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16. The entry to record this dividend is:

Answers

Answer: Debit Retained Earnings $40,080; credit Common Stock Dividend Distributable $40,080.

Explanation:

From the question, we have been informed that Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16.

Based on the information provided, above, the entry to record the dividend will be to debit the retained earnings by $40,080 and then credit the common Stock dividend Distributable by $40,080.

Ace Company purchased a machine valued at $310,000 on August 1. The equipment has an estimated useful life of six years or 2.5 million units. The equipment is estimated to have a salvage value of $7,200. Assuming the straight-line method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the first year

Answers

Answer:

The amount of depreciation at the end of the first year = $21027.77

Explanation:

Given machine cost = $310000

The life of machine = 6 years

Salvage  value = $7200

Now find the total depreciation by subtracting the salvage value from the cost of the machine.

Depreciation = Machine cost – salvage value

= 310000 – 7200

= 302800

Total depreciation of 6 years = $302800

Annual depreciation = 302800 / 6 = 50466.66

Since in the first year the machine is used from 1st August to 31st December. So, depreciation = 50466.66 *(5/12) = 21027.77

Use the following information to calculate cash paid for income taxes: Income tax expense $ 58,000 Income tax payable, January 1 13,600 Income tax payable, December 31 16,200

Answers

Answer:

Calculation of Cash Paid:

Income tax payable, January 1      $ 13,600

Income tax expense                        58,000

Total amount due                            71,600

Income tax payable, December 31  16,200

Cash Paid                                     $ 55,400

Explanation:

The Income tax payable on January 1 is added to the income tax expense for the year to obtain the amount that is due for payment this year, and then the December 31 Income tax payable is deducted to get the cash paid during the year.  This arrangement can be reversed in its proper and normal order thus:

Income tax payable, January 1      $ 13,600

Income tax expense                        58,000

Total amount due                            71,600

Cash Paid                                         55,400

Income tax payable, December 31  16,200

on august 1 2018 rocket retailers adopted a plan to discontinue in its income statement rocket would report a before-tax oss on discontinued operations of

Answers

Answer: $143,000

Explanation:

Before-tax loss on Discontinued Operations for the year ended January 31, 2019;

= Operating loss + Impairment of division assets

= $128,000 + $15,000

= $143,000

This loss will be recorded in the Income statement of Rocket Retailers separately from Continuing Operations and as it is a loss, it will most probably incur a future tax benefit. It will however reflect in the overall income of Rocket Retailers.

DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to partner Percy of $20,000. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its character?

Answers

Answer:

$24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

Explanation:

Calculation for what how much income will Percy report for the year and what is its character

Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000

= 60,000 x 40%

= 24,000.

Calculation for Percy Interest income:

4,000 x 40%

= 1,600

Guaranteed Payment: 20,000

Therefore what Percy will report will be: $24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quarter, and the price climbs to $130 per share. What is the rate of return

Answers

Answer:

Total yield or rate of return is 0.36 or 36%

Explanation:

To calculate rate of return which is also the total yield on the stock, we will use the following formula,

Total Yield = (D + C) / P0

Where,

D represents dividends paid by the stock during the yearC is the capital appreciation(pr depreciation) or rise(or fall) in the price of the stock as compared to the purchase priceP0 is the purchase price or price in Year 0

Total dividends for the year = 1.5 * 4 = $6

C = 130 - 100 = $30

Total Yield = (6 + 30) / 100

Total yield = 0.36 or 36%

Perry County University had the following account balances as of June 30, 2018. Debits are not distinguished from credits, so assume all accounts have a "normal" balance (i.e., cash is a debit and accounts payable a credit).
Accounts payable 310,000
Accounts receivable (net) 430,000
Capital assets, net of depreciation 6,200,000
Cash and cash equivalents 75,000
Cash and cash equivalents – restricted (noncurrent) 100,000
Deferred revenue-current 95,000
General obligation bonds payable - current portion (related to capital acquisition)390,000
General obligation bonds payable (related to capital acquisition) 1,700,000
Inventories 620,000
Investments - Endowment 3,000,000
Investments Long-term 1,700,000
Investments Short-term - unrestricted 800,000
Net position-restricted - expendable 1,200,000
Net position - restricted - nonexpendable 3,000,000
Revenue bonds payable (related to capital acquisition)2,000,000
Net position - Unrestricted ????????
Required
Prepare, in good form, a Statement of Net Position for Perry County State University as of June 30, 2018.

Answers

Answer and Explanation:

The Preparation a Statement of Net Position for Perry County State University as of June 30, 2018 is shown below:-

                               Perry County University

                              Statement of Net position

                             For the year June 30, 2018

Particulars                                                    Amount

Assets

Current assets

Cash and Cash equivalents

Short-term investment                                  $75,000

Account receivable                                       $430,000

Net inventories                                              $630,000

Total current assets                                      $1,925,000

Non current assets

Restricted Cash and cash equivalents       $100,000

Long term investments                                 $1,700,000

Endowment investment                              $3,000,000

Capital assets                                               $6,200,000

Total non current assets                              $11,000,000

Total assets                                                  $12,925,000

Liabilities

Current liabilities

Accounts payable                                        $310,000

Deferred revenue                                         $95,000

General obligation bonds payable-

Current position                                            $390,000

Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total
Labor-related DLHs $ 335,018 7,500 4,100 11,600
Product testing tests 51,247 950 1,050 2,000
Order size MHs 476,608 5,100 5,400 10,500
$ 862,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:_______
a. $28.88 per DLH
b. $48.81 per DLH
c. $53.94 per DLH
d. $431.44 per DLH

Answers

Answer:

Predetermined manufacturing overhead rate= $28.88 per direct labor hour

Explanation:

Giving the following information:

Labor-related DLHs $335,018 11,600

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate=  335,018/11,600

Predetermined manufacturing overhead rate= $28.88 per direct labor hour

The activity rate for the Labor-Related activity cost pool  is option A. a. $28.88 per DLH

Calculation of the active rate:

We know that

Activity Rate for Labor - Related Activity Cost Pool = Estimated Cost / Expected Activity

= $ 335,018 / 11,600 DLHs

= $ 28.88 per DLH

Hence the option a is correct.

And, the rest of the options are wrong.

learn more about rate here: https://brainly.com/question/24347131

A machine costs $600000 and is expected to yield an after tax net income of $23000 each year. Managment predicts this machine has a 10 year service life and a $120000 salvage value, and it uses straight line depreciation. Compute this machine's accounting rate of return

Answers

Answer:

6.39%

Explanation:

The cost of the machine is $600,000

The net income is $23,000

The management predict a that it has a 10 years service life

The salvage value is $120,000

The first step is to calculate the average investment

Average investment= (Cost of machine+Salvage value)/2

= $600,000+$120,000/2

= $720,000/2

= $360,000

Therefore, the accounting rate of return can be calculated as follows

= Annual net income/Average investment

= $23,000/$360,000

= 0.0639×100

= 6.39%

Hence the accounting rate of return is 6.39%

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 37,600 machine-hours. The estimated variable manufacturing overhead was $4.38 per machine-hour and the estimated total fixed manufacturing overhead was $1,026,856. The predetermined overhead rate for the recently completed year was closest to:

Answers

Answer:

Predetermined OH rate = $ 31.69 per machine hour

Explanation:

Predetermined Fixed OH rate = Estimated Fixed Overhead / Estimated machine hours = $1,026,856 / 37,600

Predetermined Fixed OH rate = $27.31 per machine hour

Predetermined OH rate = Predetermined Fixed OH rate + Predetermined variable OH rate = $ 27.31 + $ 4.38

Predetermined OH rate = $ 31.69 per machine hour

The claim is that the proportion of peas with yellow pods is equal to 0.25 (or 25%). The sample statistics from one experiment include 540 peas with 159 of them having
yellow pods. Find the value of the test statistic.
The value of the test statistic is (Round to two decimal places as needed.)

Answers

Answer:

2.361

Explanation:

Calculation to Find the value of the test statistic

Based on the given information let our:

p=0.25

x = 159

n = 540

Since our p is 0.25 the first step is to find q using this formula

q = 1 - p

Let plug in the formula

q = 1-0.25

q= 0.75

Second step is to find the psample using this formula

psample= x/n

Let plug in the formula

psample= 159/540

psample = 0.294

Last step is to find the value of the test statistic

Using this formula

z= (psample - p) / √(pq/n)

Let plug in the formula

z = (0.294 - 0.25) / √(0.25×0.75/540)

z=0.044/√(0.1875/540)

z=0.044/√(0.000347222222)

z=0.044/0.01863389

z=2.361

Therefore the value of the test statistic will be 2.361

Russell Inc. had sales of $2,300,000 for the first quarter of 2017. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $940,000 $464,000
Selling expenses 74,000 54,000
Administrative expenses 96,000 145,000
Prepare a CVP income statement for the quarter ended March 31, 2017.

Answers

Answer:

$527,000

Explanation:

Preparation of a CVP income statement for the quarter ended March 31, 2017.

Russell Inc.income statement for the quarter ended March 31, 2017.

Sales $2,300,000

VARIABLE EXPENSES

Cost of goods sold $940,000

Selling expenses 74,000

Administrative expenses 96,000

Total Variable Expenses 1,110,000

Contribution Margin 1,190,000

($2,300,000-$1,110,000)

FIXED EXPENSES

Cost of goods sold $464,000

Selling expenses 54,000

Administrative expenses 145,000

Total Fixed Expenses 663,000

Net Income/(Loss) $527,000

(1,190,000-663,000)

You’ve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business specializing in pool service. The owner, Peter Peck, is a terrific swimmer and pool repair specialist, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the PPC.

Answers

Answer: just give what u know the business is small so it can’t manage

Explanation:

Assume that you are a marketing manager for a firm that markets tablet computers. Your firm introduces a new model of tablet annually to replace the offering currently on the market. To ensure that your firm is planning and creating tablets that the marketplace values and will buy, you conduct periodic conjoint analysis studies. Briefly describe your planned study for this year.

Answers

Answer:

Choose the product

Select its attributes that are potentially important for the customers

Choose the value for each attribute

Choose the form in which the combination of these attributes is presented.

Explanation:

Conjoint analysis is a survey based on statistical techniques for market research. In this analysis assumptions of a product or service is broken into various attributes. Conjoint analysis aims to find value that consumer places for each attribute of the tablet before they will make a decision to purchase it. Conjoint analysis is a quantitative technique which is used for research purpose.

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