Answer:
the current share price is $73.31
Explanation:
The computation of the current share price is shown below:
P0 = [{D0 × (1 + g)} ÷ (1 + r1)] + [{D0 × (1 + g)^2} ÷ (1 + r1)^2] + [{D0 × (1 + g)^3} ÷ (1 + r1)^3] + [{D0 × (1 + g)^4} ÷ {(1 + r1)^3(1 + r2)}] + [{D0 × (1 + g)^5} ÷ {(1 + r1)^3(1 + r2)^2] + [{D0 × (1 + g)^6} ÷ {(1 + r1)^3(1 + r2)^3] + [{D0 × (1 + g)^7} ÷ {(rC - g)(1 + r1)^3(1 + r2)^3]
= [($4 × 1.06) ÷ 1.15] + [($4 × 1.062) ÷ 1.152] + [($4 × 1.063) ÷ 1.153] + [($4 × 1.064) ÷ (1.153 × 1.13)]
+ [($4 × 1.065) ÷ (1.153 × 1.132)] + [($4 × 1.066) ÷ (1.153 × 1.133)] + [($4 × 1.067) ÷ {(0.11 - 0.06)(1.153 × 1.133)}]
= $3.69 + $3.40 + $3.13 + $2.94 + $2.76 + $2.59 + $54.82
= $73.31
hence, the current share price is $73.31
Answer:
The correct answer is letter "A": The demand for her haircuts is elastic.
Explanation:
Elasticity is a feature of certain goods and services that affect their quantity demanded after a change in prices. The price elasticity of demand is calculated by dividing the percentage of change in quantity demanded by the percentage of change in price. Results equal to or greater than one (1) imply the demand for that product is elastic while results lower than 1 means the demand is inelastic.
Thus<em>, if a salon owner realizes her revenue increased after decreasing the haircut prices, it implies the demand for haircuts is elastic.</em>
Answer: 2,060 units
Explanation:
The Beginning inventory of February is 30% of the sales in February.
The ending inventory in February is 30% of March sales.
February beginning inventory = 30% * 2,000 = 600 units
Ending inventory = 30% * 2,200 = 660 units
Units to be purchased in February = Sales for February + Ending inventory - Beginning units
= 2,000 + 660 - 600
= 2,060 units
Answer:
Y= 6000 + 0.75X
Explanation:
High and low cost technique
Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.
<em>Variable cost of maintenance</em>
= (Cost at high activity - Cost at low activity)/ (high activity - low activity)
VC per act. = ( $15000 - $12000)/(12,000-8000)
= $0.75 per activity
<em>Fixed cost of maintenance</em>
= Total cost at high activity - (VC per act × high activity)
= $15,000 - ( $0.75 × 12,000)
= $6,000
The cost formula will be:
Y= 6000 + 0.75X
Where Y = maintenance cost, X= level of activity
