The average of anything means you add all the values and divide by the number of values. In this case you would add all the month's utility bills and divide by the number of bills included. However, in this instance, I would exclude April since this in an anomaly and she will not get a free month's cable every month. SO add the other other months together and divide by 5.
Answer:
27.84
Explanation:
In order to find the price(value of the stock) after 4 years, we must have the growth rate to reach that level. In this question the growth rate will be identified first by the given information.
DATA
ROE = 26%
Plow back ratio = 0.20
Dividend this year = Do = $2.5
Rate of return = 14%
Time period = 4 years
Solution
growth rate = ROE x plow back ratio
growth rate = 26% * 0.2
growth rate = 5.2%
Dividend next year D1 = Do x (1-plowback ratio)
D1 = 2.5 x (1-0.2)
D1 = $2
Value of stock now Po = D1/(return - growth rate)
Value of stock now Po = 2/(0.14-0.052)
Value of stock now Po = $22.73
Value of stock in 4 years = Po * (1+growth rate)^4
Value of stock in 4 years = 22.73 * (1+0.052)^4
Value of stock in 4 years = $27.84
Answer: A spiff
Explanation:
Spiff is actually a form of slang to refer to someone who receives an incentive for selling an item to customers on behalf of a vendor. This motivates the seller to push the vendor's items (sell them) onto its (seller's) customers. The incentive usually comes in the form of a bonus and is paid out immediately.
In this question the gourmet mustard manufacturer is the vendor, and Beverly is the seller. Beverly receives $1 for every jar of mustard she sells, which is the bonus. This motivates her to keep selling these jars on behalf of the manufacturer (vendor). This payment is immediate, as she receives it everytime she sells a jar of mustard.