Answer:
Stock's current market value = $44.87
Explanation:
We can solve this stock valuation problem using DDM (Dividend Discount Model).
Lets find the dividends for the years:
D0 = $1.32
D1 = $1.32*1.3 = $1.716
D2 = $1.716*1.1 = $1.888
D3 = $1.888*1.05 = $1.982
The formula of stock valuation:
Lets calculate the terminal value after Year 3 afterwards:
<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05
Now,
The present value of the stocks is gotten using formula:
So, we have:
Stock's current market value = $44.87
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Total fixed expenses $832,500
Sale price per unit 40
Variable expenses per unit 25
If the company spends an additional $30,000 on advertising, sales volume would increase by 2,500 units.
Effect on income= 2,500*(40 - 25) - 30,000= $7,500
Answer:
$61
Explanation:
The computation of unit product cost for the month under absorption costing is shown below:-
Unit product cost = Direct material + Direct labor + Variable Manufacturing overhead + Fixed manufacturing cost
= $18 + $10 + $4 + ($255,200 ÷ 8,800)
= $61
Therefore for computing the unit product cost for the month under absorption costing we simply applied the above formula.
Answer:
14.81%
Explanation:
Unemployment rate = (unemployed people/ labour force ) x 100
Labour force = unemployed people + employed people
= 230 million + 40 million = 270 million
(40 / 270) × 100 = 14.81%
I hope my answer helps you
For the answer to the question above,
It is multiple choice letter a. Face Value
In layman's term face value is the nominal value of a security of the issuer or stocks, it is the original cost of the stock shown on the certificate. For bond i<span>t is the </span>amount<span> paid to the holder at maturity.
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