Answer: $0.25
Explanation:
Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.
The present value of its growth opportunities (PVGO) will be:
= $50 - ($5.97/12%)
= $50 - ($5.97/0.12)
= $50 - $49.75
= $0.25
Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.
If we are given with the level of saving as a function of level of disposable income:
c = 500 + 0.8 d
where d is the disposable income and it is equal to 1000. Solving for c:
c = 500 + 0.8 (1000)
c = $1300
Answer:
$ 170
Explanation:
John's opportunity cost = interest that his savings could have earned in the bank + financial costs of the loan = ($1,000 x 3%) + ($2,000 x 7%) = $30 + $140 = $170
The opportunity cost is the extra cost or benefits lost from choosing one activity or investment over another alternative.
Answer:
a. 1,500
Explanation:
The formula to compute the break even point for earning target profit is shown below:
= (Fixed cost + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So, the break even point would be
= ($100,000 + $20,000) ÷ ($100 - $20)
= $120,000 ÷ $80
= 1,500 rooms
Answer:
Efficiency of the system is 90.48% and Utilization is 79.17%
Explanation:
Given parameters:
Designed capacity, D.O = 1200 employees per year
Effective capacity, E.O = 1050 employees per year
Actual trained output, A.O = 950 employees
Efficiency and Utilization are both measures of performance of a system.
Efficiency is the ratio of the actual trained output to the effective capacity.
Utilization is a ratio of the actual output to the total designed capacity.
Inputting the values,
Hence, Efficiency of the system is 90.48% and Utilization is 79.27%.
