Answer:
13.05%
Explanation:
Using CAPM Equation, Ke = Rf+Beta*(Rm-Rf)
= 0.045+1.3*(0.07)
= 0.136
= 13.60%
Using Dividend growth model, Ke = (D1/P0) + g
= (D0*(1+g)/P0) = g
= (1.50*(1+0.08)/36) + 0.08
= 0.125
= 12.50
The cost of equity (Ke) = 0.136 + 0.125 / 2
The cost of equity (Ke) = 0.261/2
The cost of equity (Ke) = 0.1305
The cost of equity (Ke) = 13.05%
Answer:
$5,000 ; $2,550
Explanation:
The computation is shown below:
For net income in year 1
= Reported net income + overstated inventory amount
= $3,000 + $2,000
= $5,000
For net income in year 2
= Reported net income - understated inventory amount
= $3,000 - $450
= $2,550
Therefore, the net income in Year 1 and in Year 2 is $5,000 and $2,550 respectively.
Answer:
Option (B) is correct.
Explanation:
If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.
Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.
The CPU is sometimes considered the "brain" of the computer
Answer:
A 6,500
Explanation:
The number of units to be sold is calculated as;
= (Pretax income + Fixed costs) ÷ Contribution margin
Given that;
Pretax income = $35,000
Fixed costs = $420,000
Contribution margin
= Selling price per unit - Variable cost per unit
= $200 - $130
= $70
= ($35,000 + $420,000) ÷ $70
= 6,500 units
