The price of the refrigerator before markup will be $325. This can be calculated by reversing the markup in the price of the refrigerator.
<h3>What is Markup?</h3>
Markup basically refers to the difference between the selling price of a good and its cost. The markup is generally expressed as a percentage and is added to the cost of the good to ensure cost cover and earn profit.
For the given question, the before markup price can be calculated as:
Given:
Makeup is the addition to the original price of a good. The after markup price can be taken as 100% + 25% = 125% of original price.
Then original price can be calculated as:
Therefore the before markup price is $325.
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Answer:
1.17%
Explanation:
Expected return is 15.1 %
Risk free rate is 5.95 %
Market risk premium is 7.8%
Therefore the beta can be calculated as follows
Expected return= risk free rate + (beta×market risk premium)
15.1%= 5.95% + (beta × 7.8%)
15.1%-5.95%= 7.8% beta
9.15%= 7.8% beta
beta= 9.15%/7.8%
beta= 1.17%
Answer:
a) 19.5 million
b) $10.5 million
Explanation:
a) Since BBQ builds 15 new restaurants at a cost of $1 million per restaurant, The total cost for building restaurants = 15 × $1 million = $15 million
BBQ spends $300000 on equipment and furnishings for each restaurant. Therefore, total money spent on equipment and furnishings = $300000 × 15 = $4.5 million
The amount of Economic investments = The total cost for building restaurants + total money spent on equipment and furnishings = $15 million + $4.5 million = $19.5 million
b) BBQ issues and sells 300,000 shares of stock at $35 per share.
Therefore, the purely financial investment = $35 per share × 300000 shares = $10.5 million
In the elastic portion of the demand curve.
