Fabbri Wares is a division of a major corporation. The following data are for the latest year of operations: Sales$9,540,000 Net operating income$1,163,880 Average operating assets$3,000,000 The company's minimum required rate of return 14%Required:a. What is the division's return on investment (ROI)?b. What is the division's residual income?
What will be an ideal response?
| a. | ROI = Net operating income ÷ Average operating assets |
| b. | Residual income = Net operating income ? Minimum required rate of return × Average |
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In this symptom, self-censorship occurs as members strive not to have others perceive them as deviating from the group’s consensus. This is a symptom of what?
A. brainstorming B. boomeranging C. authoritarian leadership D. groupthink
Financial information for four companies is provided in the following table:
a) If you expect that the dividend of each company will grow at rate #2 into the foreseeable future (g is constant), at what price would you be willing to buy each of these stocks?
b) Assume that the companies will grow at rate #1 for the amount of time indicated in the table above. After that, assume that the companies will grow at rate #2 forever. Under these assumptions, what is the price at which you would be willing to buy these companies’ stocks using the two-stage dividend growth model? Calculate your solution twice, first using equation 9-5 on page 260 and then using the FAME_TwoStageValue user-defined function.
c) Assume that the transition between growth rates #1 and #2 will be gradual rather than instantaneous. Using the transition period given in the table, what is the price at which you would be willing to buy these companies’ stocks using the H Model dividend growth model? Calculate your solution twice, the first time using equation 9-8 on page 264 and then using the FAME_HModelValue user-defined function.
d) How does the calculated intrinsic value compare to the quoted price of the stock? Use an IF statement to display whether the stock is undervalued, overvalued, or fairly valued.
______ is a predictive technique that models the relationship between a dependent variable and one or more independent variables.
A. Linear regression analysis B. Linear trend multiplicative method C. Linear trend additive method D. Second-order or double smoothing
A classic and important example of strict scrutiny of classifications based upon race is the 1954 school desegregation case of:
a. Board of Curators of the University of Missouri v. Horowitz. b. Brentwood Academy v. Tennessee Secondary School Athletic Association. c. Parents Involved in Community Schools v. Seattle School District No. 1. d. Brown v. Board of Education of Topeka.