Answer:
A. 2.2 cents
Explanation:
The computation of cost per copy for accounting department is shown below:-
Total copies = Purchase + Accounting + Information technology
= $150,000 + $450,000 + $200,000
= $800,000
Cost for accounting department = Accounting ÷ Total copies × New copier
= $450,000 ÷ $800,000 × $17,600
= $9,900
Now, Cost per copy = Cost for accounting department ÷ Accounting
= $9,900 ÷ $450,000
= 2.2 cents
Answer: Market Penetration.
Explanation:
Macy is making use of sales promotion and adverts, which aims at increasing their market penetration. Market penetration involves the measures put in place by a business to increase their market presence and gain customers.
Answer:
The current share price is $71.05
Explanation:
P3 = D3(1 + g)/(R – g)
= D0[(1 + g1)^3](1 + g2)/(R – g)
= [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)
= $90.20
The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:
P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113
= 1.568 + 1.695 + 1.832 + 65.958
= $71.05
Therefore, The current share price is $71.05
Given Information:
Lifetime cap = 5 %
Initial interest rate = 4 %
Periodic adjustment rate = 1%
Required Information:
Maximum annual interest rate = ?
Answer:
Maximum annual interest rate = 9%
Explanation:
In adjustable rate mortgage scheme, lifetime cap is the maximum limit that is allowed after the initial the interest rate. The periodic adjustment rate is 1% and it is the maximum adjustment allowed in one year.
Maximum annual interest rate = Initial interest rate + Lifetime Cap
Maximum annual interest rate = 4% + 5%
Maximum annual interest rate = 9%
Therefore, maximum annual interest rate you could end up paying on the ARM is 9%
Answer:
We should pay $243.3 each month to pay of the loan.
Explanation
The present value of the loan is 8,000, the number of compounding periods are (3*12) =36 because payment is going to be made monthly for 3 years, the future value of the loan is 0 as there will be no lump sum payment at the end of the loan and equal payments each month, the monthly interest rate is 6%/12= 0.5%. We input these 4 values to find the monthly payment.
PV= 8,000
FV=0
N=36
I=0.5
Compute PMT= 243.3