Answer:
Contribution Margin Income Statement
+Sales Revenue 1,400 x $95 = $133,000
-Variable production costs 1,400 x $65 = ($91,000)
-Variable selling costs 1,400 x $2 = ($2,800)
=Contribution Margin $133,000 - $91,000 - $2,800
= $39,200
-Fixed production costs ($13,000)
=Net profit = $39,200 - $13,000
= $26,200
The price of any security is nothing but the PV of Cash flows that are discounted at the required rate of Ret(Ke )Price = D1 / [ Ke - g ] = $ 1.5 / [ 16 % - 3 % ] = $ 1.5 / [ 13 % ] = $ 11.54.So, the Price of Stock today is $ 11.54.
The dividend rate of growth is the annualized share rate of growth that a selected stock's dividend undergoes over an amount of time. several mature firms ask to extend the dividends paid to their investors on a daily basis. Knowing the dividend growth rate may be a key input for stock valuation models identified as dividend discount models.
Being ready to calculate the dividend growth rate is important for the victimization of the dividend discount model. The dividend discount model is a kind of security-pricing model. The dividend discount model assumes that the calculable future dividends–discounted by the surplus of internal growth over the company's estimated dividend growth rate–determine a given stock's price.
If the dividend discount model procedure ends up in the next variety than the current price of a company’s shares, the model considers the stock undervalued. Investors who use the dividend discount model believe that by estimating the expectation of money flow within the future, they'll realize the intrinsic value of a specific stock.
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Answer:
the price that can be affordable for every one and it should be by the opinion of the common people and labours
Answer:
a higher price and produce a smaller output than a competitive firm
Explanation:
A monpolistically competitive firm is a firm that :
1. Sells differentiated products from other firms in the industry.
2. Has many buyers and sellers
3. Is a price maker
4. Has no barrier to entry or exist of firms
An example of a monpolistically competitive firm is a resturant.
A competitive firm is a firm that:
1. Sells identical goods with other firms in the industry.
2. Is a price taker . Prices are set by forces of demand and supply
3. Has many buyers and sellers
4. There are no barriers to entry or exist of firms.
When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.
While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.
A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.