Answer:
4%
Explanation:
Interest included in $918000 is for six months from 10/1/18 to 4/1/12.
Interest for first three month period from 10/1/18 to 31/12/18 = $9000.
This implies that :
Interest from 1/1/19 to 4/1/19 = $9000.
Principal amount excluding interest due:
= Baker's obligation amount - Accrued interest - Accrued interest
= $918,000 - $9,000 - $9,000
= $900,000
Interest rate:
= [($9,000 × 12/3) ÷ 900000] × 100
= 4%
Answer: Demand based pricing
Explanation:
Ray-Ban's plan of gathering information about the other brands sold in department stores, which includes their prices, would most likely be used in a demand based basis for pricing
Demand-based pricing, refers to the method of pricing whereby the fluctuations in the demand of consumers is considered.
Due to the flctuations, the prices are adjusted in a way that fits the changes in the values of the product.
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
Answer:
$74.58
Explanation:
The price of share of the Bretton Inc in the given question shall be the present value of all the dividends associated with this share in the future years.
Present value of year 1 dividend=3.31(1+13%)^-1=$2.93
(3.15*1.05)
Present value of year 2 dividend=3.48(1+13%)^-2=$2.73
(3.31*1.05)
Present value of year 3 dividend=3.65(1+13%)^-3=$2.53
(3.48*1.05)
Present value of year 4 dividend=3.83(1+11%)^-4=$2.52
(3.65*1.05)
Present value of year 5 dividend=4.02(1+11%)^-5=$2.39
(3.83*1.05)
Present value of year 6 dividend=4.22(1+11%)^-6=$2.26
(4.02*1.05)
Present value of all the cash flows after 6 year=$59.22
[4.22(1+5%)/(9%-5%)]*(1+11%)^-6
Price of share $74.58
Answer:
<h3>the labor market</h3>
Explanation:
<h2>#carry on learning</h2>
