So, if you are the only such producer, it means that you don't have to fear a competition! this means that if people want to have clothes, they will have to buy with you, no matter what prize you set. Because of this, you can decide to set your prizes very high so that you can Maximize your profit!
Answer:
b. five cents (today's CPI / 1962 CPI)
Explanation:
CPI stands for Consumer Price Index
The normal formula to compute the CPI is shown below:
Consumer price index = (Product price in current year) ÷ (Product price in base year) × 100
In the given situation, the formula would be
= five cents × (today's CPI ÷ 1962 CPI)
Since we have to compute the today CPI so we multiplied the five cents
Answer:
$31.57 per share
Explanation:
Terminal Value (TV) = CF5(1 + g) / (Ke – g)
= $72,500*(1 + 0.0160) / (0.1540-0.0160)
= $73,660 / 0.1380
= $533,768
Year Cash Flow PVF at 15.40% PV of Free Cash Flow
1 48,200 0.866551 41,768
2 57,900 0.750911 43,478
3 71,300 0.650703 46,395
4 72,500 0.563867 40,880
4 533,768 0.563867 <u>300,974</u>
TOTAL <u>473,495</u>
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The current value per share of stock = Total Present value of future cash flows / Number of shares outstanding
= $473,495 / 15,000 shares outstanding
= $31.57 per share
Answer:
guaranteed insurability rider
Explanation:
First of all, a rider is an insurance policy provision that allows customers to purchase insurance options that increase their coverage. Sometimes riders are given for free as a promotional free benefit.
A guaranteed insurability (GI) rider grants a current policy holder the option to purchase additional life insurance with no underwriting.
Answer:
a. Is answered
b. The amount realized increases.
As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.
c. The amount realized decreases.
As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.
d. Amount realized increases.
As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.
e. Realized value increases to $10,000.
The seller accepted the stock so the fair value will be the amount considered for the realized value.