Answer:
The answer is $ 218
Explanation:
Solution
Given that:
Description Amount
Direct materials $91
Direct labor $85
Variable manufacturing overhead $7
Fixed manufacturing overhead
( $ 161,000/ 4,600 units) $35
The unit product under absorption costing = $218
Therefore, the absorption costing unit product cost is $218
Answer:
Option (C) is correct.
Explanation:
Given that,
Amount invested today = $2,000
Interest paid annually(r) = 5%
Time period(n) = 3 years
= $2,315.25
Therefore,
Total amount earn:
= Future value - Present value
= $2,315.25 - $2,000
= $315.25
Answer:
P0 = $17.39130 rounded off to $17.39
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected in Year 1 or next year
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
However, to calculate the Price of the stock today, we must first calculate the required rate of return (r) for the stock. The required rate of return can be calculated using the CAPM equation. The equation is as follows,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the expected return on market
We know the risk free rate and expected return on market and we also know that the beta of market is always equal to 1. So, the beta of stock which is 10% more volatile than the market will be,
Beta of stock = 1 * 10% + 1 = 1.1
r = 0.05 + 1.1 * (0.14 - 0.05)
r = 0.149 or 14.9%
The dividend expected for next year will be,
D1 = 4 * 30% = $1.2 per share
Using the DDM,
P0 = 1.2 / (0.149 - 0.08)
P0 = $17.39130 rounded off to $17.39
Answer:
don't know the answer what it is the chapter name
Answer:
prevents markets from reaching a socially desirable outcome
Explanation:
Asymmetric information is when one of the parties in a transaction has more information than the other party.
For example, a seller might purposely sell a faulty product to a buyer. The seller knows the product is faulty but the buyer doesn't. This prevents markets from reaching socially desirable outcome.
Asymmetric information can lead to adverse selection which can prevent markets from reaching socially desirable outcome.
I hope my answer helps you
