Answer:
the breakeven quantity at current price is 500 units
Explanation:
The computation of the breakeven quantity at current price is shown below:
Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)
= $100,000 ÷ ($600 - $400)
= 500 units
Hence, the breakeven quantity at current price is 500 units
We simply used the above formula so that the correct units could arrive
Answer:
im so so sorry i dont know how to do this
Explanation:
Answer:
$20
Explanation:
Price / earnings per share = 10
earnings per share = $2
price / $2 = 10
Price = $20
Answer:
The incorrect statement regarding the cash budget is :
The total cash available is calculated by adding cash receipts and the ending cash balance.
Explanation:
The Cash available is calculated by <em>adding</em> the Cash Receipts to the Opening Cash Balance <u>instead of</u> the Ending Cash Balance.
The Cash that is available would then be used to meet cash expenditures for the anticipated period.
Answer:
The correct option B ,stock price increased proportionately with the dividend increase
Explanation:
To a rational investor, the price tag on a share is given by the expected dividend divided by the investor's rate of return.
To illustrate this further, the increase in dividend in percentage terms is calculated thus:
=($1.48-$1.45)/$1.45=2.07%
The divided has increased by 2.07%
Assuming investor's rate of return is 10%, we can calculate the price of the stock when dividend is $1.45 as well as when it is $1.48
price=$1.45/0.1=$14.5
price=$1.48/0.1=$14.8
The increase in price is computed thus:
(14.8-14.5)/14.5=2.07%
There is no doubt that an increase in dividend of 2.07% brought about the same increase share price ,hence choice of answer.
