Answer:
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Explanation:
Giving the following information:
Honda Motor Company is considering offering an $1800 rebate on its minivan
New price $30200
Old price $28400.
The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.
Honda's profit margin with the rebate is $5650 per vehicle.
Normal price:
Income= (5650+1800)*42000= $312,900,000
New price:
Income= 5650* 53900= $304,535,000
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Answer:
330 tickets sold to adults
370 tickets sold to children
Explanation:
Suppose:
Number of Tickets
Adult = A
Child = C
According to given condition
A + C = 700 (Eq 1)
7A + 3C = 3,420 (Eq 2)
By multiplying (Eq 1) with 3 we get
3A + 3C = 2,100 (Eq 3)
By subtracting (Eq 3) from (Eq 1)
7A + 3C - (3A + 3C) = 3,420 - 2100
7A - 3A + 3C -3C = 1320
4A = 1320
A = 1320/4
A = 330
Putting value of A in (Eq 1)
330 + C = 700
C = 700 - 330
C = 370
Check:
(7x330) + ( 3x370) = 3420
2310 + 1110 = 3420
3420 = 3420
Answer:
A life insurance policy.
Explanation:
An assignment or collateral assignment is a type of guarantee for the lender. the most used is a life insurance policy that will cover the payments of the debt to the lender if Harry fails to pay.
Full question attached
Answer and Explanation:
Please see answer and explanation attached
