The inventory turnover ratio: Multiple Choice Is used to analyze collectability. Is used to measure solvency. Reveals how many times a company sells its merchandise inventory during a period. Reveals how many days a company can sell inventory if no new merchandise is purchased. Calculation depends on the company's inventory valuation method.

Answers

Answer 1

Answer: Reveals how many times a company sells its merchandise inventory during a period.

Explanation:

The Inventory Turnover Ratio is used to measure how often a company is able to sell off all its inventory within a single period. The higher this is, the better because it means that the company has a high sales rate and is incurring low storage costs since the inventory does not stay with them for long.

It is important to use this ratio relative to the type of industry it is being applied to however. For instance, a car dealership would be expected to have a lower inventory turnover ratio than a grocery store so comparing them using this ratio would be inaccurate.


Related Questions

__________ is a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes.

Answers

Answer: Octave risk assessment

Explanation:

Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE) risk assessment is is simply a self-directed approach whereby the employees in an organization take responsibility and set up the security strategy of the organization.

It's a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes. In this case, with the knowledge of the employees, the team defines the state of security in the organization, identify the risks and then sets a security strategy.

A portfolio's return is the weighted average of each individual investment's return. However, a portfolio's risk is not the weighted average of each investment's standard deviation.

a. True
b. False

Answers

False
Explanation
Because it didn’t have a standard weight and it was average

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 14 percent and the company just paid a $1.90 dividend. what is the current share price

Answers

Answer:

$46.20

Explanation:

Dividend in year 1 = 1.90 x 1.26 = 2.39

Dividend in year 2 = 1.90 x 1.26² = 3.02

Dividend in year 3 = 1.90 x 1.26³ = 3.80

Dividend in year 3 = (3.80 x 1.07) / (0.14 - 0.07) = 58.10

Calculate the present value of these dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 2.39

Cash flow in year 1 = 3.02

Cash flow in year 1 = 3.80 + 58.10

I = 14

PV = $46.20

To determine PV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Journalize the entries for the following transactions:
Mar. 1 Established a petty cash fund of $771.
31 The amount of cash in the petty cash fund is now $632. The fund is replenished based on the following receipts: office supplies, $33 selling expenses, $113.
Record any discrepancy in the cash short and over account. If an amount box does not require an entry, leave it blank.

Answers

Answer:

Mar 1

Dr Petty Cash $771.00

Cr Cash $771.00

Mar 31

Dr Office Supplies $33.00

Dr Selling Expenses 113.00

Cr Cash Short and Over $27.00

Cr Cash $119.00

Explanation:

Preparation of the entry to Record any discrepancy in the cash short and over account.

Mar 1

Dr Petty Cash $771.00

Cr Cash $771.00

(To record petty cash)

Mar 31

Dr Office Supplies $33.00

Dr Selling Expenses 113.00

Cr Cash Short and Over $27.00

[($33+$133+$632)-$771]

Cr Cash $119.00

(33+$133-$27)

(To Record discrepancy in the cash short and over account)

The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or

Answers

Answer:

1. NSF check

- Appears on the Bank Statement as: Debit Memo

- Decreases the Balance of the Company's Bank Account

2. EFT Deposit

- Appears on the Bank Statement as: Crediit Memo

- Increases the Balance of the Company's Bank Account

3. Service charge

- Appears on the Bank Statement as: Debit Memo

- Decreases the Balance of the Company's Bank Account

4. Bank correction of an error from recording a $300 deposit as $30

- Appears on the Bank Statement as: Debit Memo

- Increases the Balance of the Company's Bank Account

As the operations manager, you prefer to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month. Assuming you currently have 23 workers, what is the shortage cost for May

Answers

Answer:

Shortage cost for May is $71,000

Explanation:

The expected demand for the month of May is 5000 units.

Shortages for month are carried to next month.

Shortage cost is $10 per month.

(Working days per month x hrs/day x # of workers)

20 days * 8 hours * 23 workers = 3680

Jan :  3680 - 3500 = +180

Feb : 3680 + 180 - 4500 = -640

Mar : 3680 - 640 -6000  = -2980

Apr : 3680 - 2980 -6500 = 5780

May : 3680 - 5780 -5000 = 7100

Sarbanes-Oxley Act requires which of the following:

a. An effective internal control
b. Light penalties for violators
c. Auditors must evaluate internal controls
d. Auditor's work overseen by Public Accounting Board

Answers

Answer:

The correct answer is the option A: An effective internal control.

Explanation:

To begin with, the name of "Sarbanes-Oxley Act" refers to the well known United States federal law whose main purpose is to set new requirements, or at least expand them, regarding the boards and management areas of public companies of the US. It was enacted in 2002 due to the various scandals regarding the accounts of companies like Enron back then. Therefore that the bill contains itself eleven sections where most of them are refered specifically to the public's responsabilities that the board of directors of the public companies have. As well as the criminal penalties that they can face in the case of breaking the law.

Answer:

a. An effective internal control
c. Auditors must evaluate internal controls

Explanation:

SOX requires managers and auditors whose stock is publicly traded to have an effective internal control system, auditors must evaluate internal controls, violators may receive harsh penalties (not light penalties), and auditors’ work is overseen by Public Company Accounting Oversight Board (PCAOB) (not by the Public Accounting Board).

Using all of their resources, Company A can make either 100 computers or 50 cell phones while Company B can make either 200 computers or 150 cell phones. If both companies have the same quantity of resources, then ________ has an absolute advantage in computers while ________ has a comparative advantage in cell phones.

Answers

Answer:

company B

company B

Explanation:

A company has comparative advantage in production if it produces at a lower opportunity cost when compared to other companies.

Opportunity cost of producing cell phones

company A = 100 / 50 = 2

company B = 200 / 150 = 1.3

The opportunity cost of company B is lower than that of company A. Company B has a comparative advantage in the production of cell phones

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Company B produces 200 computers while company A produces 100 computer. Company B has an absolute advantage in the production of computers

A company issues bonds at par on April 1. These 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date. How much total cash interest is received on April 1 by the bond issuer

Answers

Answer: $3000

Explanation:

From the information given, we are told that a company issues bonds at par on April 1 and that these 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date.

The total cash interest that is received on April 1 by the bond issuer will be:

= $100000 × 9% × 4/12

= $100,000 x 0.09 x ⅓

= $3,000

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $656,000
Direct labor cost $80,000
Raw material purchases $135,000
Selling expenses $105,000
Administrative expenses $41,000
Manufacturing overhead
applied to work in process $201,000
Actual manufacturing
overhead costs $222,000

Required:
a. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
b. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
c. Prepare an income statement.

Answers

Answer:

Mason Company

a) Schedule of Cost of Goods Manufactured:

Direct labor cost                        $80,000

Raw material purchases          $135,000

Manufacturing overhead

applied to work in process     $201,000

Cost of goods manufactured $416,000

b) Schedule of Cost of Goods Sold:

Cost of goods manufactured $416,000

Under-applied overhead            21,000

Cost of goods sold                $437,000

c) Income Statement:

Sales                                $656,000

Cost of goods sold          $437,000

Gross profit                      $219,000

Selling expenses            $105,000

Administrative expenses  $41,000

Total expenses               $146,000

Net income                       $73,000

Explanation:

a) Data and Calculations:

Sales                                $656,000

Direct labor cost                $80,000

Raw material purchases $135,000

Selling expenses            $105,000

Administrative expenses $41,000

Manufacturing overhead

applied to work in process $201,000

Actual manufacturing

overhead costs                  $222,000

Under-applied overhead    $21,000 ($222,000 - $201,000)

From the list below, select the items that are classified as a materials activity. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Raw materials used
Raw materials beginning inventory
Raw materials purchases
Work in process beginning inventory
Goods manufactured
Direct labor used
Factor overhead used

Answers

Answer and Explanation:

The classification is as follows:

Under Materials activity  

Opening balance of Raw materials inventory

Purchase of the Raw materials purchases

Under Production activity:

OPening balance of Work-in process inventory

Raw material used

Direct labor used

Factory overhead used

Under Sales activity:

Goods manufactured

In this way it should be categorized

Hence, the same should be relevant

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour. The direct labor rate variance is a.$1,500 unfavorable b.$1,500 favorable c.$1,650 unfavorable d.$1,650 favorable

Answers

Answer: c. $1,650 unfavorable

Explanation:

The direct labor rate variance shows the difference between the cost of direct labor that the company thought it would incur vs what it actually incurs for the period.

Formula is:

Direct labor rate variance = Actual cost of direct labor - Standard cost of actual hours of direct labor

= Actual hours * (Actual cost - Standard cost)

= 5,500 * (24 - 23.70)

= $1,650 unfavorable

Unfavorable because the actual cost incurred was more than the cost anticipated.

U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year

Answers

Answer:

$5.5228 million

Or

$5,522,800

Explanation:

First, calculate the present value of all cash outflows

Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )

Where

Initial cost = $13 million

Year 1 cost = $10 million

Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696

Annual Cost = $1.2 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )

Present value of cash outflow = $13 million + $8.696 million + $6.0228 million

Present value of cash outflow = $27.7188 million

Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year

Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years

Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years

Where

Present value of Annual revenue = $27.7188 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Annual Revenue = $27.7188 million / 5.019

Annual Revenue = $5.5228 million

Annual Revenue = $5,522,800

Year 2 Year 1 Sales $86,060 $74,200 Total assets at the end of the year 63,800 68,600 Total assets at the beginning of the year 68,600 79,800 a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.

Answers

Answer:

a. We have:

Year 2 asset turnover = 1.3 times

Year 1 asset turnover = 1.0 time

b. Since asset turnover of the ABC Depot increases from 1.0 time in Year 1 to 1.3 times in Year 2, these turnover therefore indicate that the ability of The ABC Depot to use its assets to generate sales more effectively has increased/improved.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

The ABC Depot reported the following data (in millions) in its recent financial statements:

                                                                               Year 2            Year 1

Sales                                                                    $86,060        $74,200

Total assets at the end of the year                      63,800          68,600

Total assets at the beginning of the year           68,600          79,800

a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.

b.  What do these turnover indicate concerning the trend in the ability of The ABC Depot to effectively use its assets to generate sales?

The explanation of the answers is now provided as follows:

a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.

The asset turnover can be calculated using the following formula:

Asset turnover = Sales / Average total assets ………………… (1)

Where:

Average total assets = (Total assets at the beginning of the year + Total assets at the end of the year) / 2

Using equation (1), we therefore have:

Year 2 asset turnover = $86,060 / (($68,600 + $63,800) / 2) = 1.3 times

Year 1 asset turnover = $74,200 / (($79,800 +$ 68,600) / 2) = 1.0 time

b.  What do these turnover indicate concerning the trend in the ability of The ABC Depot to effectively use its assets to generate sales?

A higher asset turnover indicates that a company is using its assets to generate sales more effectively.

Since asset turnover of the ABC Depot increases from 1.0 time in Year 1 to 1.3 times in Year 2, these turnover therefore indicate that the ability of The ABC Depot to use its assets to generate sales more effectively has increased/improved.

Terry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 34 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Terry expect to incur during July if he drove the car 1,534 miles

Answers

Answer:

Total cost= $984.62

Explanation:

Giving the following information:

Fixed cost= $460

Unitary variable cost= $0.34 per mile

Miles driven= 1,534

First, we need to establish the total cost formula:

Total cost= fixed cost + unitary variable cost*number of units

Total cost= 460 + 0.34*x

x= number of miles

Now, the total cost for the month:

Total cost= 460 + 0.34*1,543

Total cost= $984.62

Sami transferred property with a fair market value of $600 and a tax basis of $300 to a corporation in exchange for stock with a fair market value of $600. In addition, Sami received stock with a fair market value of $50 in exchange for services she provided to the corporation in the incorporation process. Which of the following statements best describes the tax result to Sami because of the exchanges?

a. Sami will recognize $50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351.
b. Sami will recognize $50 of compensation income, but she cannot count the shares of stock she receives in exchange for services in determining if the control test is met under section 351
c. Sami will not recognize S50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351
d. Sami will not recognize $50 of compensation income, and she cannot count the shares of stock she receives in exchange for services in determining if the control test is met under section 351

Answers

Answer: Sami will recognize $50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351.

Explanation:

Due to the exchanges in the question, it should be noted that Sami will recognize $50 of compensation income. It should be noted that under section 351, services are not considered to be property. She can then count the stock that she get for the services in order to be able to know whether the control test is met.

Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $40,000 and Retained Earnings of $815,500. During the year, no additional common stock was issued, and $10,000 of dividends were paid. For the year ended December 31, 20Y7, AAA Delivery reported a net income of $67,250. Prepare a statement of stockholders' equity for the year ended December 31, 20Y7.

Answers

Answer and Explanation:

The preparation of the statement of stockholder equity should be presented below:

Statement of stockholders' equity

For the year ended December 31, 20Y7

Particulars                   Common Stock          Retained Earnings          Total

Beginning balance,

January 1                       40000                           815500                        855500

Add: Net income            0                                    67250                           67250

Less: Dividends paid     0                                    -10000                        -10000

Ending balance,

December 31                  40000                              872750                   912750

The stockholders' equity balance for the year ended December 31, 20Y7 is $912,750    

What is stockholders' equity?

Shareholders' equity is what shows the investment status of a business over a period of time.

Statement of stockholders' equity for the year ended December 31, 20Y7

Particulars                   Common Stock          Retained Earnings          Total

Beginning balance,

January 1                       40,000                           815,500                      855,500

Add: Net income            0                                    67,250                           67,250

Less: Dividends paid     0                                    -10,000                        -10,000

Ending balance

December 31                  40,000                           872,750                   912,750    

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Flag A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $500 at signing. The car you like costs $9000. a) What is your effective annual interest rate

Answers

Answer:

27,000

Explanation:

if you add then all together you get 2700

27,000 whew too much money

The Anti-Trust Department also monitors cartels within the United States. As long as they don't control more than 40 percent of the market, then the Anti-Trust Department will leave them alone.

a. Investigating cartels is a responsibility of the Federal Reserve Bank.
b. This is a true statement.
c. This statement is false.
d. The US. Anti-Trust Department does not investigate cartels in America

Answers

Answer:

c. This statement is false.

Explanation:

Anti-Trust Department is the department in the united states that could enforced the anti-trusted law. They have the right to investigate onto the collusion, this could harm the competition that could lead the welfare loss

Since large share could be considered so it should be controlled and investigated

Therefore the given statement is false

A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales, and sales were $1,082,000. Operating profit was a.$367,880 b.$714,120 c.$169,880 d.$135,904

Answers

Answer: $169,880

Explanation:

Operating profit for a company is simply its sales less its fixed costs and variable costs:

Operating profit = Sales revenue - Variable costs - Fixed costs

Variable costs:

= 66% * 1,082,000

= $714,120

Operating profit:

= 1,082,000 - 714,120 - 198,000

= $169,880

what are the purpose of the information in Management?​

Answers

Answer:

The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.

Answer:

It helps dictate how businesses form strategies, and implement processes based on them.

Pick a major U.S. industry, such as automobiles or computers, and discuss the lapses in technology and innovation on the domestic front that permitted foreign competitors to get a foothold and, in some cases, a dominant share of the market. Who or what do you think was to blame for this situation?

Answers

US General Motors Company became a leading name in several automotive inventions and industries, as well as steel, by pioneering massive manufacturing processes on a massive scale. World War II ushered in numerous changes in U.S. invention that are still remembered fondly: A strong federal role in fostering R&D, a defense focus, as well as the vital role performed by small competitors. The general engine firms in the U.S. So, over the previous 10 years, it U.S. industry has developed considerable strides in adapting to flexible production processes and integrating technological advances in the Industry sector.Industry & economic growth have been on the rise throughout the half-century that spanned from the end of the Civil War to the beginning of World War II, several of the reasons that fueled US progress and development were also important for Japan's achievement.Expansion of Japan's largest share market has indeed been postponed due to rapid population performance and development of transport infrastructure.Accordingly, high enough standard manufacturers and American firms selected low-cost manufacturing techniques defined by resource utilization & expertise to reduce costs over time.

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Grohl Co. issued 22 year bonds 2 years ago at a coupon rate of 5 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price?

Answers

Answer:

the current bond price is $518.62

Explanation:

The computation of the current bond price is given below:

Given that

NPER = (22 - 2) × 2 = 40

Assuming future value be $1000

PMT = $1,000 ×5% ÷2 = $25

RATE = 11% ÷ 2 = 5.5%

The formula is given below:

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the current bond price is $518.62

the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices

Answers

Answer:

1000,$5000maaf kalo salah

A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________

Answers

Answer:

Depreciation Expense, Credit, Accumulated Depreciation.

A differentiation strategy allows a company to charge a(n) __________ price for its product, if it chooses to do so. a. premium b. exorbitant c. low d. average e. escalating

Answers

Answer:

A

Explanation:

A differentiation strategy entails making ones product different from that of other firms in the industry. This would enable the firm that has a differentiated product sell at a premium. The aim of this strategy is to have a competitive advantage

Advantages of a differentiation strategy

products are unique. This reduces the competition the product faces with other products in the industry it increases brand loyalty

_______________ tasks are non-repetitive in nature and involve considerable
application of knowledge, judgment, and expertise. As such, the teams draw their members from different disciplines and functional units, so that specialized expertise can be applied to the task(s) at hand.
1) Project teams
2) Management teams
3) Parallel teams
4) None of these make sense to me.
5) Work teams

Answers

Answer:

1) Project teams

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

Project teams comprises individuals or group of people that come together as a unit to take on a one-time and non-repetitive tasks that are generally considered to be often complex and as such would require input from members with different types of training, skills, knowledge competence and expertise.

This ultimately implies that, project teams tasks are non-repetitive in nature and involve considerable application of knowledge, skills, competence, judgment, and expertise.

Item2 1 points Time Remaining 59 minutes 39 seconds00:59:39 Item 2 Time Remaining 59 minutes 39 seconds00:59:39 Crimson Inc. recorded credit sales of $755,000, of which $500,000 is not yet due, $180,000 is past due for up to 180 days, and $75,000 is past due for more than 180 days. Under the aging of receivables method, Crimson Inc. expects it will not collect 5% of the amount not yet due, 19% of the amount past due for up to 180 days, and 28% of the amount past due for more than 180 days. The allowance account had a debit balance of $2,800 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account

Answers

Answer:

$83,000

Explanation:

The computation of the ending balance of the allowance account is given below:

Given that

Accounts receivable not yet due be $500,000

So, the bad debt for the same should be

= 5% of $500,000

= $25,000

Accounts receivable due for upto 180 days be $180,000

So, the bad debts for the same should be

= 19% of $180,000

= $34,200

Accounts recievable due for more than 180 days be $75,000

So, the bad debts for the same should be

= 28% of $75,000

= $21,000

Now  

Ending balance of Allowance aoount  is

= $2,800 + $25,000 + $34,200 + $21,000

= $83,000

The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required return on the stock is 13 percent and the current book value per share is $12.70. What is the current market value of this stock

Answers

Answer:

the current market value of this stock is $15.96

Explanation:

given

current earnings = $1.96 per share

growth rate = 2.2 percent

return on the stock = 13 percent

current book value = $12.70 per share

solution

first we get here return on equity that is

return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share     ....................1

return on equity = [tex]\frac{1.96 + (1+0.022)}{12.70}[/tex]  

return on equity =15.77 %

and

now we get here payout ration that is

growth rate = retention ration × ROE      ....................2

put here value

2.2% = (1 - payout ratio ) × 15.77

payout ratio  = 86.05 %

and

now we get here current dividend per share that is

current dividend per share = current earning per share × payout ratio  ...........3

put here value

current dividend per share = 1.96 × 86.05 %

current dividend per share = $1.6865

and

now we get here current market value  

current market value  =  [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate]     ....................1

current market value  = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]

current market value  = [tex]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[/tex]

current market value = $15.96

A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when:

a. all or most of its competitors are using mostly different competitive approaches and therefore the marketplace is not big enough to accommodate all of the competitors.
b. all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets.
c. the number of camera and drone workstations the company has installed is NOT well above the industry-averages (as reported on pages 6 and 7 of the most recent Camera & Drone Journal).
d. the company's market share for action cameras has not been the largest for two straight years and when its EPS and ROE have also not been the highest in the industry for two straight years.
e. the company's operating profits per action camera sold are not substantially above the industry-average benchmarks in at least three geographic regions (as reported on p. 6 of the most recent Camera & Drone Journal),

Answers

Answer:

Hence the correct option is option b - All are most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor expected EPS, ROE, and stock price appreciation targets.

Explanation:      

A company's management should nearly always give serious consideration to creating significant adjustments in its camera or drawn strategies and competitive approaches when all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of those companies to capture sales volumes and revenues large enough to earn profits large enough to satisfy investor expected EPS ROE and stock price appreciation targets.

The correct option for the given question is "all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets."

What is camera/drone strategies?

The camera/drone strategy involves the strategic approach of a company in which the company overlooks its competitors, their market, and strategies and modify its strategies accordingly.

If the competitors are using copycat competitive approaches and hence are making it difficult for the company to achieve sales volume and revenue and the expectations of the companies' investors regarding the EPS, ROE and stock price appreciation are difficult to meet, the company  should consider its camera/drone strategies and competitive approaches.

Therefore the correct option is b.

Learn more about camera/drone strategies here:

brainly.com/question/27006230

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