________ is one of the solution to the agency problem in publiclyminus−held corporations.
1 answer:
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Transfer price is an alternative term of opportunity cost.
$ 289.66 is the transfer price can be utilized for transport costs, loading and unloading costs, and administrative costs
solution
Transfer cost is the Total opportunity cost of moving an item from one place to another, including transport costs, loading and unloading costs, and administrative costs. Transfer price is an alternative term of opportunity cost.
Total variable cost = 740,000× $220 = 162,800,000
Total fixed cost = $3,950,000
Total selling cost = 740,000 × $515 = $381,100,000
Transfer cost = (selling cost - (variable cost + Fixed cost )
= ($381,100,000- ($162,800,000 + $3,950,000) = $214,350,000
Transfer price = $214,350,000 ÷ 740,000 units = $ 289.66
Answer:
intrinsic value of SCI’s shares is $33.28 per share
Explanation:
given data
dividend (D₀) = $1.92 per share
constant rate (g) = 4.00% per year
required return (rs ) = 10.00%
to find out
intrinsic value of SCI’s shares
solution
we know that intrinsic value is here express as
intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1
put here value we get
intrinsic value =
intrinsic value = 33.28
so intrinsic value of SCI’s shares is $33.28 per share