Answer:
39 years
Explanation:
Under the rule of 70, the economy doubles its real GDP per capita income
In this the computation is done by dividing the 70 by the annual growth rate
So, the formula is shown below:
Time period = Rule of 70 ÷ growth rate
where,
Growth rate is 1.8%
So, the time period at which the GDP doubles is
= 70 ÷ 1.8
= 39 years
By dividing the rule of 70 by the growth rate we can find the number of years at which the GDP doubles
Answer:
PV= $17,365,776.86
Explanation:
Giving the following information:
Cf= 2,200,000
Number of years= 20
Discount rate= 12%
Additional lump sum= 9,000,000
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000
FV= $167,515,373.4
Now, the present value:
PV= FV/(1+i)^n
PV= 167,515,373.4/1.12^20
PV= $17,365,776.86
Answer:
$13.53
Explanation:
Data provided in the question:
Annual dividend per share, D0 = $1.84
Cost of capital, ke = 13.6% = 0.136
Now,
since,
the dividend remains the constant, the growth rate (g) of the dividend will be 0%
Also,
Current price = [ D0 × ( 1 + g ) ] ÷ [ ke - g ]
= [ $1.84 × ( 1 + 0% ) ] ÷ [ 13.6% - 0% ]
= $1.84 ÷ 0.136
= $13.53
A small clothing firm currently produces 50,000 shirts and blouses per month. the costs of its factory, raw materials, and labor are $500,000 per month. if the company is to increase production by 5,000 and that requires additional labor and raw material expense of $100,000, what is the best estimate of costs of the increased production is $100,000.
Most people think you'll make a kajillion dollars and be well on your way to overnight stardom. But the reality is that the profit margins on clothing are notoriously low. According to industry analysts, you're looking at 4-13% profit margins. That means for every $100 you invest, you get $104-$113 back.
Production is the process of making or manufacturing goods and products from raw materials or components. In other words, production takes inputs and uses them to create an output that is fit for the consumption of a good or product that has value to an end-user or customer.
Learn more about Production here
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Answer:
The answer is $3,300.
Explanation:
To calculate interest paid on an amount, the following formula is used:
Simple interest = Principal × Rate × Time
Principal = $110,000
Rate in decimal = 9% = 0.09
Time in years = 4 months = 4/12 years
∴ Simple interest = $110,000 × 0.09 × 4/12 = $3,300.
