Answer:
Target cost per unit= $2.64
Explanation:
The target cost is arrived at by subtracting the a desired profit margin from a competitive selling price.
The target cost per unit =
((selling price × qty) - (cost of capital(%) × initial cost))/No of units
=( (3× 1,000,000) - (18%×2,000,000) )/ 1,000,000
= 2.64
Target cost per unit= $2.64
Answer:
6.98%
Explanation:
Blunt's total market value = $86,000
stocks outstanding = 1,500
market value per share = $86,000 / 1,500 = $57.33
excess cash = $6,000
excess cash per share = $6,000 / 1,500 = $4
if excess cash is distributed, the price per share will decrease by $4 or by $4 / $57.33 = 6.98%
if instead of distributing excess cash among stockholders, the company repurchased treasury stock, then the stock price would probably increase, instead of decreasing.
Answer: A. The option to buy shares of stock if its price goes up.
Explanation: Among the above options the less real option is " to buy shares of stock if its price goes up". It is advisable by brokers to buy shares of stock when the prices are down and sell when the prices are up in order to make profit.
The other options are more real, because expansion of a business in a new geographic region will yield more profits. Abandoning a failed business project is advisable and switching from one type of fuel to another is done based on preference and cost.
Answer:
The developer intends to sell 138 units by the end of year 5
Explanation:
The 100 units grows at the 5% per year, hence you would in the attached spreadsheet the applicable number of housing units per year, which is calculated by multiplying previous year's units with 1.05
Since capture rate is 25% the number of expected sale is 25% of the total of 552.56 as given in the attached.
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