Robert gillman, an equity research analyst at gillman advisors, believes in efficient markets, he has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing pan asis minin co. robert has the following information available. pan asis minin co. stock is trading at $23.75the company's stock is expected to apy a year-end divfident of $1.14 that is expected to grow at a certain reat. the stock's expected rate of return is 11.40%based on the information just given, what will be robert's forecast of pamc's growth rate? a. 6.60% b.11.35 c. 5.48% d. 9.90%which of the following statements accurately describes the relationship between earning and dividends when all other factors are held constant? a. growth in earning requires in dividends. b. long-run earnings growth occurs primarily because firms pay dividends to reward their shareholders for investing in the companyc. retaining a higher percentage of earning will result in a higher growth rate.

How do primary and secondary industries differ

Yowell company granted a sales discount of $360 to a customer when it collected the amount due on account. yowell uses the perpetual inventory system. which of the following answers reflects the effects on the financial statements of only the discount? assets = liab. + equity rev. − exp. = net inc. cash flow a. (360 ) = na + (360 ) (360 ) − na = (360 ) (360 ) oa b. na = (360 ) + 360 360 − na = 360 na c. (360 ) = na + (360 ) (360 ) − na = (360 ) na d. na = (360 ) + 360 360 − na = 360 na

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?