Answer: C. $250
Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.
Labour cost per day of hiring two workers = $80 x 2 = $160
Total cost per day when three
workers are hires. This includes both the fixed cost and labour cost
Total Cost = fixed cost + labor cost
= $250 + $80 x 3
= $490.
Answer:
Promotional strategy is designed to inform, persuade, or remind target audiences about those products.
Explanation:
Answer:
The study carried out by Alberto Alesina and Lawrence Summers was about the role of Independence central banks, not about unemployment.
A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with <u>central banks that have high independence</u> had lower inflation rates than countries with <u>central banks that have low independence</u>.
William Phillips studied the correlation between unemployment and inflation rate. He concluded that <u>high inflation rate led to low unemployment</u>, and vice versa.
Answer:
Write the full question a so I can answer?
Answer:
a $7.95
b. $2.21
c $16.36
d, $13.01
Explanation:
according to the constant dividend growth model
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 2/3 = 1/3
1/3 x 3.6 = $1.2
r = cost of equity
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 1.7(15 - 5) = 22%
g = growth rate
g = plowback rate x ROE
2/3 X 9 = 6%
1. [1.2 x 1.06] / (0.22 - 0.06) = 1.272/ 0.16 = $7.95
2.
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm
price to earning ratio = market value per share / earnings
$7.95 / $3.6 = $2.21
c. present value of growth opportunities = earnings / cost of equity
3.6 / 0.22 = $16.36
d.
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 1/3 = 2/3
2/3 x 3.6 = $2.40
r = cost of equity = 22%
g = plowback rate x ROE
1/3 X 9 = 3%
[2.4 x 1.03] / (0.22 - 0.03) = 2.472/ 0.19 = $13.01