Correct option: real value
The real value is the value of something (any product or service) in terms of other product or service while Nominal value is the value of something in terms of money. Here the value of college tuition which is a service is equal to the cost of Toyota Camry which is a product. Since the value of a service is equal to the value of a product, this is an example of real value.
Answer:
New price (P1) = $72.88
Explanation:
Given:
Risk-free rate of interest (Rf) = 5%
Expected rate of market return (Rm) = 17%
Old price (P0) = $64
Dividend (D) = $2
Beta (β) = 1.0
New price (P1) = ?
Computation of expected rate on return:
Expected rate on return (r) = Rf + β(Rm - Rf)
Expected rate on return (r) = 5% + 1.0(17% - 5%)
Expected rate on return (r) = 5% + 1.0(12%)
Expected rate on return (r) = 5% + 12%
Expected rate on return (r) = 17%
Computation:
Expected rate on return (r) = (D + P1 - P0) / P0
17% = ($2 + P1 - $64) / $64
0.17 = (2 + P1 - $64) / $64
10.88 = P1 - $62
New price (P1) = $72.88
Answer:
The restaurant need to sell 46.6 slices (47 slices)
Explanation:
Giving the following information:
The restaurant sells pizza at a rate of $13.57/slice. Expenses for the restaurant include raw material for pizza at $8.57 per slice, $172.00 as monthly rental and $61.00 monthly as insurance.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= (172 + 61) / (13.57 - 8.57)
Break-even point= 46.6 slices
