Answer:
Target Cost $12
Explanation:
<em />
<em>Target Sales Price 20
</em>
<em>Gross Mark up 20 * 40% (-8)
</em>
Target Cost $12
To calculate the target cost is necessary to rest the gross mark up to the target sales price.
Answer:
Breakeven is 24 students
Explanation:
Breakeven is when the sales are equal to cost.
So,
Sales= Px*Q
Px is the price of the training session
Q are the number of participants
Sales= 150Q
Cost= fix cost+variables cost
Cost=3000+25Q
Breakeven
150Q=3000+25Q
150Q-25Q=3000
125Q=3000
Q=3000/125
Q=24
Breakeven is 24 students
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
Answer:
= $93.64
Explanation:
Price = D1/ (r-g)
D1 = Dividend next year =D0(1+g)
D1 = 2(1.03) =2.06
g; growth rate = 3%
r= required return (Use CAPM to find it) as shown below;
CAPM ;r = risk free + beta(MRP)
beta = 40% *1 ( since market beta is equal to 1)
therefore, Beta = 0.4
CAPM; r = 2% + (0.4*8%) = 5.2%
Next, use the rate of return i.e 5.2% , to calculate the price of the stock;
Price = D1/ (r-g)
= 2.06 / (5.2% -3%)
Price = $93.64