Answer:
I tried to order the information and prepared the following table:
Product A Product B Product C
Unit Selling Price = $650 $200 <u>e)$2,300</u>
Unit Variable Costs = $390 <u>c)$108</u> <u>f)$1,495</u>
Unit Contribution Margin = <u>a)$260</u> $92 $805
Contribution Margin Ratio = <u>b)40%</u> d)<u>46%</u> 35%
contribution margin ratio = (revenue - cogs) / revenue or
contribution margin ratio = contribution margin / revenue
To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
Answer:
It will purchase three.
Explanation:
the return will be:
income / investment
1ST rug cleaners: 200/500 = 40% return
2 rug cleaners: 150/500 = 30% return
3 rug cleaners: 75/500 = 15% return
4 rug cleaners: 20/500 = 4% return
As the current market rate is 12% if the forth rug cleaner is pruchased it will not turn out profitable.
Answer:
E
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Asset income - measures changes in the asset income
this transaction - China purchases $10 billion of United States government securities - would be included in the capital account
