Even better products has come out with a new and improved product. as a result, the firm projects an roe of 20%, and it will maintain a plowback ratio of 0.30. its projected earnings are $2 per share. investors expect a 14% rate of return on the stock.

a.
at what price and p/e ratio would you expect the firm to sell? (do not round intermediate calculations. round your answers to 2 decimal places.)

price $
p/e ratio
b.
what is the present value of growth opportunities? (do not round intermediate calculations. round your answer to 2 decimal places.)

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

During the holiday season, maria's department store works with a contracted employment agency to bring extra workers on board to handle overflow business, and extra duties such as wrapping presents. maria's is using during these rush times.