Answer:
$26.05
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid = d0 x (1 + growth rate)
d0 = dividend that was just paid
r = cost of equity
g = growth rate
1.5 x (1.045^6) / 12 - 4.5 = $26.05
Answer:
Option B
Explanation:
Both Nadia and Samantha have insured their cars and willing to pay $100 over the expected loss for insurance. If the car is stolen the company would pay expected loss and would earn nothing and if the car is not stolen the company would not be liable for any loss and would earn $200, Therefore the company would earn between $0 and $200.
Answer:
(A) $144,000.
Explanation:
For computing the indirect costs allocated to the Commercial Department first we have to compute the per unit cost which is shown below:
Per unit cost = (Allocated department overhead indirect cost) ÷ (total number of direct labor hours)
= $396,000 ÷ 22,000
= $18
The total number of direct labor hours = Consumer + commercial
= 14,000 + 8,000
= 22,000
Now the indirect cost equal to
= Per unit cost × Commercial direct labor hours
= $18 × 8,000
= $144,000
Answer:
Unlimited
Explanation:
GIven that:
You short-sell 200 shares of Tuckerton Trading Co
now selling for $50 per share.
If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the more loss you're going to accumulate.
From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.
∴
The maximum possible loss = 200 × 50( 1 - infinity share price)
= Unlimited loss
