Answer:
$50,094.8
Explanation:
Flexible Budget are budget prepared by taking the actual activity level achieved at standard cost/price. WHILE
q is taken as the actual level of activity which is 240 diving hours.
Puget Sound Divers
Flexible Budget For the Month Ended May 31
Revenue ($440.00 ×240) $105,600
Expenses:
Wages and salaries ($11,800 + $128.00×240) $42,520
Supplies ($3.00 ×240) $720
Equipment rental ($2,100 + $22.00 ×240) $7,380
Insurance ($4,000) $4,000
Miscellaneous ($530 + $1.48×240) $885.2
Total expense $55,505.2
Net operating income ($105,600- $55,505.2) $ 50,094.8
Net operating income =Revenue - Total expenses
Answer:
a) Oligopoly
Explanation:
The oligopoly is a market structure which characterized by the presence of a few large companies producing homogeneous or differentiated products
In this market, there are few sellers plus there is also a barriers for entering the new firms in the market. Also, the prices are normally fixed in this market because due to the competitors as they are fear of price war
So in the given question, it indicated the oligopoly scenario
Answer:
C
Explanation:
The decisions around which stages of production to handle internally and which to buy from others
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.2)1 = $2.40
D2= Do(1+g)2 = $2(1+0.2)2 = $2.88
D3= Do(1+g)3 = $2(1+0.2)3 = $3.456
D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472
D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5
V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5
V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742
V1 = $11.3824
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n
V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5
V2 = $5.0762/0.1435
V2 = $35.3742
Po = V1 + V2
Po = $11.3824 + $35.3742
Po = $46.76
Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.
In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.
The first would would be $5,500 and then the last space would be $5,250
