Answer:
The Skulls
The location that Skulls should select is:
Alpha Avenue.
Explanation:
a) Data and Calculations:
Estimated number of persons living in this new chapter house = 30
Fixed Variable Total Cost
Alpha Ave. $5,000 $200 per person $11,000
Beta Blvd. $8,000 $150 per person $12,500
b) The location that Skulls should select must minimize the total cost. The location which meets this criterion is Alpha Avenue, with a total cost of $11,000. This is purely because of the number of persons living in the chapter house. Assuming that this number would increase, then it may be considered economically better to choose the Beta Boulevard instead of the Alpha Avenue.
A) because that is they only one that actually makes sense
Answer:
B) (I) is false, (II) true.
Explanation:
The interest rate of longer-term securities is usually higher than the interest rate of short-term securities because more risk is associated with the longer-term securities. An example of the risks associated with long-term securities is that it possible for inflation to make value of the payment to fall. Another risk is when there is a rise in the interest rate which usually lead to a fall in the bond prices.
Treasury STRIPS refers to bonds that are offered for sale at a discount to their face value. Their major attribute is that they do not pay interest to investors but the full face value of the bonds is paid to the investor when the bonds mature. This means the bonds mature at par.
The full meaning of STRIPS is Separate Trading of Registered Interest and Principal of Securities, and they are types of bonds that are commonly referred to as zero-coupon bonds because no interest or coupon is paid by them.
From the above, we can see that (B) is the correct option in the question. That is, (I) is false, (II) true.
Answer:
B. $32.37
Explanation:
The computation of the maximum price for paying the share today is shown below:
Let us assume the buying price be x
Now we applying the following formula
Return = (sale price - buy price + dividend) ÷ (buy price)
12% = ($35 - x + $1.25) ÷ x
0.12 = $36.25 - x
1.12x = $36.25
x = $36.25 ÷ 1.12
= $32.37
Hence, the correct option is B.
