Answer:
The answer is B.
Explanation:
To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).
Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.
Answer:
provisions / accruals
Explanation:
see above in the answer, both mean basically the same but in insurance terms accrual is more correct
Answer:
A. a computer programmer who starts her own software Company
Explanation:
Entrepreneurship is the process through which new businesses are started. An entrepreneur is a person who takes risks by committing their time and resources to start a business.
The computer programmer is the entrepreneur in this case. She is starting a new software business. Other than her computer skills, she will need to be creative and innovate to develop products that will appeal to customers. She will take all risks of her new business but also stand to enjoy its success.
Answer:
The Current share price is $94.79
Explanation:
Dividend Growth Model determines the share price of a company which offers perpetual dividend with stable growth. It is the expected dividend of a share divided by the net return rate of growth rate
.
According to given data
Last dividend = D0 = $3.40
Rate of return = 15%
Growth rates:
For 3 years = 29% per year
After 3 years = 7.3% in perpetuity
Dividend after 3 years = D3 = 3.40 x ( 1 + 0.29 )^3 = $7.30
We can calculate the price of share using following formula:
Price of share = D3 / Rate of return - Growth rate
Price of share = $7.30 / 15% - 7.3% = $7.30 / 7.70% = $94.79