Craftwell Inc. pays a $0.75 dividend every quarter and will maintain this policy forever. What price should you pay for one share of common stock if you want an annual return of 10.5% on your investment?
A. $30.94
B. $28.57
C. $30.02
D. $29.17
Answer: B. $28.57
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In a SWOT analysis, potential internal weaknesses are harmful when they identify all key areas that require improvement. Weaknesses focus on the absence of certain strengths, including absence of an Internet marketing plan, damaged reputation, problem areas for service, outdated technology, employee issues, and so on.
Answer the following statement true (T) or false (F)
Which of the following statements concerning the formation of coalitions is not true?
A. Coalitions form all the time. B. Forming coalitions can magnify the number of actors at the table. C. All of these statements are true. D. Coalitions can make difficult conflict situations more manageable.
Siddon Inc is considering investing in equipment that costs $24,000. The equipment would be depreciated using the straight-line method with no half-year convention over five years and have no salvage value. If the company has a 35 percent income tax rate and desires an after-tax rate of return of 11 percent on investments, the total present value of the depreciation tax shield is:
A) $8,652. B) $8,400. C) $6,209. D) $997.
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Trago assigns variable overhead at a rate of $1.80 per unit of production. Fixed overhead equals $400,000 per month. Compute the total budgeted overhead for June.
A. $920,200. B. $878,800. C. $922,000. D. $904,900. E. $930,100.