All else being equal, which of the following would cause the total contribution margin to increase?
A) A decrease in variable costs per unit.
B) An increase in sales volume.
C) A decrease in fixed costs per unit.
D) An increase in the sales price per unit.
C
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Determine the price of a share of stock whose last annual dividend payment (D0) was $1.50, assuming a required rate of return of 12% and considering the following:
a) The dividend payment is expected to remain constant (i.e., g = 0) indefinitely. b) The dividend payment is expected to grow at a constant rate of 3% per year indefinitely. c) The dividend payment is expected to grow at a rate of 8% for four years and then immediately decline to 3% indefinitely. Calculate your solution twice, the first time using formula 9-5 on page 260, and the second time using the FAME_TwoStageValue user-defined function. d) The dividend payment is expected to grow at a rate of 8% for four years and then gradually decline over a three year transition period to 3% indefinitely. Calculate your solution twice, first time using formula 9-8 on page 264, and the second time using the FAME_HModelValue user-defined function. e) Using the same assumptions as in part d, calculate the value of the stock using the FAME_ThreeStageModel user-defined function. f) How do the calculated intrinsic values compare to the current price of $16? Use an IF statement to display whether the stock is undervalued, overvalued, or fairly valued.
The receivable turnover is useful in assessing the effectiveness of credit policies
Indicate whether the statement is true or false
Which of the following items is not a management concept that was created to improve company performance?
A. Customer orientation. B. GAAP constraints and guidelines. C. Total quality management. D. Continuous improvement. E. Just-in-time manufacturing.
An aging population and an increase in obesity are part of the major factors driving increases in the cost of health care.
Answer the following statement true (T) or false (F)