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podryga [215]
3 years ago
13

Fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20. what is the break-even sales

Business
1 answer:
garik1379 [7]3 years ago
8 0
I need help on this too
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When a research project includes the collection of biological samples, all planned future uses of the samples, identifiers, and
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4 0
4 years ago
Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield
Galina-37 [17]

Answer:

required return on the company's stock = 11%

Value of each share =$88.51

Explanation:

The constant growth model states that P_0=\frac{D_1}{k_e-g}. If ke is made subject of formular, k_e=\frac{D_1}{P_0}+g.

This implies that ke= dividend yield plus growth rate = 6%+5%=11%. Therefore the required return on the company's stock = 11%

Values of each share = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{P3}{(1+ke)^3}.

where D_1= D_0*(1+g)=3(1.5)

and P3= \frac{D4}{ke-g}

Value of each share = \frac{3(1.5)}{(1+0.11)^1}+\frac{3(1.5)(1.25)}{(1+0.11)^2}+\frac{3(1.5)(1.25)(1.05)}{(1+0.11)^3}+\frac{3(1.5)(1.25)(1.05)^2}{(0.11-0.05)(1+0.11)^3} = 88.51

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4 years ago
Price ceilings are often established in order to help farmers. create excess supply. keep products affordable for consumers. kee
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