Answer:
The correct option is A, selecting a specific city in which to locate
Explanation:
This question can be solved if we try to eliminate obviously wrong options ,for instance options B and D are entirely out of context with the issue raised because even a layman knows that location of an industry means siting a business in a particular area.
However, we are left with options A and C,but it is important to note that community location is more specific and points to the exact location where the business is to be sited whereas general region is generic in nature.
Judging from the above, the specific city where the business is to be built is best option.
Answer:
$178,000
Explanation:
The computation of the total stockholders' equity is shown below:
= Share capital + additional paid in capital - deficit balance in retained earnings
where,
Share capital = 19,000 shares × $3 = $57,000
Additional paid in capital = 19,000 shares × $11 = $209,000
And, the deficit balance in Retained Earnings is $88,000
Now put these values to the above formula
So, the value would be equal to
= $57,000 + $209,000 - $88,000
= $178,000
I think the correct answer is D. tell me if im correct
Answer:
The EOQ is 242 units
Explanation:
Economic Order Quantity: The Economic order quantity is that quantity which is to be produced by minimizing the ordering cost and the carrying cost
The computation of the economic order quantity is calculated by applying the formula which is shown below:
= 
= 
= $242 units
The Economic order quantity should always be expressed in units.
The other items which are mentioned are irrelevant. Hence, ignored.
Answer:
The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).
Explanation:
to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.
Let r be the discount rate which is 10%.
a.
The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.
The price of this stock can be calculated as,
Price or P0 = Dividend / r
P0 = 10 / 0.1 = $100
b.
The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.
P0 = D1 / r - g
Where,
- D1 is the dividend for the next period
- r is the cost of equity or discount rate
- g is the growth rate in dividends
P0 = 5 / (0.1 - 0.04)
P0 = $83.33
c.
The price of this stock can be calculated using the present of dividends.
P0 = 5 / (1+0.1) + 5 * (1+0.2) / (1+0.1)^2 + 5 * (1+0.2)^2 / (1+0.1)^3 +
5 * (1+0.2)^3 / (1+0.1)^4 + 5 * (1+0.2)^4 / (1+0.1)^5 + 5 * (1+0.2)^5 / (1+0.1)^6
P0 = $34.28
