Answer:
It determines the degree to which the net present value reacts to changes in a single variable
Explanation:
Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.
It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.
Answer:
discontinuous innovation
Explanation:
The discontinuous innovations bring totally new to the world products that are so different from products that already exist that they reshape consumers habits and therefore markets. For example, the personal computer changed the way we live and work.
Answer: 12.88%
Explanation:
The following information can.be inferred from the question:
Purchase price of share = $36.48
Dividend = $1.62
Selling price = $41.18
Capital gain = $41.18 - $36.48 = $4.70
Capital gain yield:
= Capital gain / Purchase price × 100
= (4.70 / 36.48) × 100
= 0.1288
= 12.88%
Answer:The cost of capital that will make both investments equal is 17.045%
Explanation:
Investment A
$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.
Value of Investment A = 1500 000/r
Investment B
$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.
Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)
Value of investment B = 1236000/(r - 0.03)
1500 000/r = 1236000/(r - 0.03)
1236000(r) = 1500000(r - 0.03)
(r - 0.03) = 1236000( r)/1500000
r - 0.03 = 0.824r
r - 0.824r = 0.03 = 0.176r = 0.03
r = 0.03/0.176 = 0.170454545
R = 17.045%
The cost of capital that will make both investments to be equal is 17.045%
Answer:
Standard markup pricing
Explanation:
Standard markup is a quick and easy way to find out how much you pay for your goods or services.
After calculating the actual cost of the product, the seller or business owner adds a percentage of the actual cost of the product to arrive at its selling price.
so here
Actual cost = $30
Markup = 60% of actual cost
Markup = 0.6 × $30
Markup = $18
so selling price is
selling price = $(30 + 18)
selling price = $48
