What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent. What happens to total output (in percent)? The rental price of capital?
Current ratios show relative amount of working capital, while quick ratios show the amount of quick assets by current liabilities. “Ratio analysis is an important and powerful technique or method, general, used for financial analysis. The purpose of financial analysis is to diagnose the information content in financial statements so as to judge the profitability, financial soundness of the firm, and chalk out the way to improve existing performance.” (Ramagopal, 2008) Duke Energy’s Current ratio is 3.54; this is calculated by current assets, 2,049 million, divided by current liabilities, 578 million. There is no current problem with the liquidity in this company. The quick ratio is .33 and this is calculated by cash and accounts receivable, 1,501,000+ 1,316,000 divided by current liabilities, 8,644,000.
What is the expected dividend yield and expected capital gains yield? Explain the difference in the required return estimates from the ValueLine (see question 1a) to the WSJ price data. The company’s return on common stock using the constant growth model is 7.72%. The expected dividend yield is [pic]. The expected capital gains yield is the difference of the total yield, 7.72%, and the dividend yield of 2.22%, which give us 5.5% for the
Their cash flow is the net income plus depreciation. C. Now, suppose the company changes its depreciation calculation procedure (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? The depreciation will be $3,000,000. Their total revenue will be subtracted from their total expense which will be their net income.
A straight line is produced from the data when plotted on a graph. This can be described by the mathematical equation y=2x. Y represents the population size, x represents time 2 in the number of individuals added during each time interval from the equation y=mx+b, data for any linear population growth can be described. Y represents the population size, x represents time, m represents the number of individuals added during each time interval and b represents the initial population.\ The number of individuals joined to the population increases at each time interval when a population exhibits exponential growth. 1,2,4,6,8,16,32,64,128.... is a pattern that a data set for a population that is growing exponentially.
Looking at the data net sales increased over the five period from $2,097,000.00 to $5,218,007.04 increase $3,121.007. Totaling gross profit went from 816,000.00 to $2,030,469.12 increase of $1,214,469.10. In the above pro forma balance sheet, it has been established that one has assumed that current gross profit has increased in the ratio of gross profits. A reduction in any of the following selling expenses or administration expense will allow the company to retain more of its earnings and profit margin, and therefore will increase its need for external funding. The dividend disbursement rate is 25 percent of earnings, and the balance in retained earnings at the end of 2012 was $1,436,833.09.
The profit percentage of assets varies by industry, but in general, the higher the ROA the better. We can see a good trend over years in the company. Comments: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. The formula for ROE is: ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital.
Each ratio used by any company is just as important as the next. Each ratio plays a part in intracompany comparisons, industry average comparisons, and intercompany comparisons. This week we felt comfortable learning about the usefulness of the statement of cash flows. We also felt comfortable with the different classifications of
An activity can have more than one cost driver attached to it. For example, a production activity may have the following associated cost-drivers: a machine, machine operator(s), floor space occupied, power consumed, and the quantity of waste and/or rejected output. (BusinessDictionary.com, 2013)" I think the company would do better with Activity Based Costing (ABC) because this allocation method is more accurate because it takes all cost related factors into consideration. The first way the company was allocating department costs was and even three way split, which was undercutting Fabricating, which needs more funds, and this method was overcompensating Laminating and Assembling, which require less. With the ABC Method, the costs are factored by the different cost drivers, such as machinery, staff, number of parts needed, amount of products made, as well as direct material costs and direct labor hours.
First is GDP, or Gross Domestic Product. This measures everything that a country produces in a year. Second is real GDP, which removes the effect of price changes. This is a more accurate measurement of the country's actual output, because it removes the impact of inflation. This makes it the best way to compare the GDP for any year to prior years.