Answer:
sale price is $0.78
Explanation:
Given data
assets = $10,000,000
rate = 7% = 0.07
Sales volume = 350,000 units per year
Variable costs = $16 per unit
Fixed costs = $1,500,000 per year
to find out
sales price per unit
solution
we find required return that i s
return = asset × rate
return = 10,000,000 × 0.07
return = $700000
so here total cost = Sales volume × Variable costs + fixed cost
put here all these value
total cost = 350000 × 16 + 1,500,000
total cost = $7100000
so now for sale price
sale price = total cost + required return / sale
put all these value
sale price = ( 7100000 + 700000 ) / 10,000,000
sale price is $0.78
Answer:
a. True
Explanation:
The above is true because financial resources are needed to enable a business meet up with its daily activities in terms of funding. Also, physical resources are buildings, machineries and assets in general which are required to carry a business daily operations. The labor resources, which is the most important resources are the workforce that carry out the day to day operations of a business.
The answer may likely be letter a, Jena can keep the bulldozers and sue David for the full purchase price but if David has not sign any contract in regards with the bull dozers that he had purchased then Jena will not have the right to sue David but instead, letter d, resell or dispose of the goods in the open market.
Answer:
$ 152.35
Explanation:
The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.
Value in perpetuity=dividend/required return
dividend is $20
required return is 5.10%
value in perpetuity=$20/5.10%=$392.16
The price of the stock today is the present value of the value in perpetuity
PV=FV*(1+r)^-n
FV is $392.16
r is the required return of 5.10%
n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years
price=$392*(1+5.10%)^-19=$ 152.35
