Answer:
A net income decrease of $130900 will occur by eliminating the mountain bike division.
Explanation:
Find the attachment
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.
Learn more about markup here:
brainly.com/question/5189512
Idk I’m srry im just trying to finish my set up
The cost of unloading is $52,000
Explanation:
Cost is the cash interest that a corporation has expended on sales and accounting to manufacture it. Within an organization, costs represent the amount of money spent on manufacturing or developing a good or service. Price requires no benefit premium.
Resource Unloading Equipment $15,000
Fuel $2,000
Operating Labour = (25% × [4 $35,000] = $35,000)
= $35,000
Total = $35,000+$15,000
+$2,000
= $52,000
Answer:
Explanation:
a.)
Dividend discount model(DDM) is used to determine the price of a stock.
The formula is as follows;
Price ;P0 = D1 /(r-g)
D1 = Dividend in year 1
r = capitalization rate or required rate of return
g = dividend growth rate
P0 = 8/( 0.10-0.05)
P0 = 160.
The price of the Fi corporation's stock is therefore $160.
b.)
Use the formula that shows the relationship between ROE , retention rate and growth rate. It's as follows;
g = ROE *b
g = growth rate
b = retention rate
Given Earnings per Share (EPS) = $12 and dividend = $8, find dividend payout ratio first.
retention ratio = (1 -dividend payout ratio)
dividend payout ratio = 8/12 = 0.667 or 66.7%
retention ratio ; b = (1 -0.667)
b = 0.333 or 33.3%
Plug it in the formula;
0.05 = ROE * 0.333
ROE = 0.05/0.333
ROE = 0.15 or 15%
c.)
This question is asking for the Present Value of Growth Opportunity (PVGO)
The formula is as follows;
PVGO = Price - EPS1 /r
Price = $160 (from part a)
Expected earnings per share (EPS) = $12
required rate of return(capitalization rate) ; r = 10% or 0.10 as a decimal
PVGO = 160 - 12/0.10
PVGO = 160 -120
PVGO = $40
Therefore, the market is paying $40 per share for growth opportunities.
