Answer:
$20,000
Explanation:
Given :
Total cost of inventory= $576,000
Upgraded cost of calculator =$170,000
Sold cost of calculator =$230,000
Present sales cost = $40,000.
The incremental revenue of the calculator of sales can be determined by
=$230,000 - $170,000
=$60,000
Therefore financial advantage to the company from upgrading to the calculators can be determined
=$20,000
Answer:
The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).
Explanation:
to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.
Let r be the discount rate which is 10%.
a.
The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.
The price of this stock can be calculated as,
Price or P0 = Dividend / r
P0 = 10 / 0.1 = $100
b.
The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.
P0 = D1 / r - g
Where,
- D1 is the dividend for the next period
- r is the cost of equity or discount rate
- g is the growth rate in dividends
P0 = 5 / (0.1 - 0.04)
P0 = $83.33
c.
The price of this stock can be calculated using the present of dividends.
P0 = 5 / (1+0.1) + 5 * (1+0.2) / (1+0.1)^2 + 5 * (1+0.2)^2 / (1+0.1)^3 +
5 * (1+0.2)^3 / (1+0.1)^4 + 5 * (1+0.2)^4 / (1+0.1)^5 + 5 * (1+0.2)^5 / (1+0.1)^6
P0 = $34.28
Germany does not have a comparative advantage, which is the ability to do something better or more efficiently that someone else. Even though they are producing bananas, the industry is artificially supported by the tax incentives and not because Germany is an amazing banana-growing location.
The consequences for the economy are lost opportunity costs that could be producing things where they <em>do </em>have a comparative advantage (cars, for example). Another consequence is that the tax money could be better spent on other things.
Answer: The correct answer is "d. there will be no shifts of the curves, but the real interest rate rises.".
Explanation: If there is a shortage of loanable funds, then: there will be no shifts of the curves, but the real interest rate rises.
this causes as the interest rate rises to equilibrium the amount offered of loanable funds increases and the quantity demanded of loanable funds decreases
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
