Answer:
After stock dividend, Heidi will own 440 shares at a price of $15.45 per share.
Explanation:
Heidi owns 400 shares.
The price of these shares is $17/per share.
The firm announces a 10% stock dividend.
The number of shares owned after dividend
=Current shares+10% of current shares
=400+10% of 400
=400+40 shares
=440 shares
Price per share after dividend
=Current value of shares/ number of shares after stock dividend
=
=
=$15.45
Answer: $118,304
Explanation:
Given the following:
End of year cashflow of portfolio is either :
$70000 or $195,000
Probability of either equals = 0.5
With a riskless investment in T-bills of 4% and a risk premium of 8%, then the expected rate of return = 12%
Therefore ;
Amount of portfolio × (1 + expected rate of return) = expected cashflow.
Expected cash flow = probability × end of year cashflow
Expected cashflow = (0.5 × 70000) + (0.5 × 195000)
= 35000 + 97500 = $132500
Therefore ;
Amount of portfolio × (1 + 0.12) = 132500
Amount of portfolio × 1.12 = 132500
Amount of portfolio = 132500/1.12
Amount of portfolio = $118,303. 57
=118,304
It is difficult to do this interpretation because there may not have been time for the outcome to have developed. For example, in Venezuela right now there is an attempt by part of the opposition to defeat the government through street violence and reverse the social gains of Hugo Chavez and Nicolas Maduro but the dispute still has not been resolved.
Answer:
CVP Income Statement
Sales revenue 2,350,000
Less: Total variable cost <u>1,110,000</u>
Contribution margin 1,240,000
Less: Fixed cost <u>663,000</u>
Net Operating income <u>$577,000</u>
Note:
Cost of goods sold 940000
Selling expenses 74000
Admin expense <u>96000 </u>
Total variable cost <u>1110000</u>
Cost of goods sold 464000
Selling expenses 54000
Admin expense <u>145000</u>
Total Fixed cost <u>663000</u>