Answer:
$21,000
Explanation:
initial investment $25,000
we need to determine the expected value of every possibility:
- $15,000 loss ⇒ 20% x $10,000 = $2,000
- $29,000 loss ⇒ 15% x $5,000 = $750
- $40,000 gain ⇒ 5% x $65,000 = $3,250
- break even ⇒ 60% x $25,000 = $15,000
total expected value = $21,000
The correct answer among the choices given is the third option. Speculation would mean to an economist as making high-risk investments with borrowed money. It is the purchase of something hoping for it to be more valuable at a certain time.
The amount that it should budget for total expenses is: $456,103.
<h3>Budgeted total expense</h3>
Using this formula
Total expenses=(Yearly sales×38%)+ (Yearly sales×24%)
Let plug in the formula
Total expenses=$279,547+$176,556
Total expenses=$456,103
Therefore the correct option is A.
Learn more about total expenses here:brainly.com/question/25317819
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Answer:
Explanation:
First, we need to find current stock price, which equals to Next year dividend / (required rate of return - growth rate)
=4 / (0.08 - 0.04)
= $4 / 0.04 = $100
Then we can apply the found current stock price to find present value of growth opportunities
Present value of growth opportunities =current stock price - [forcasted Earning per share / required rate of return]
= $100 - ($4 / 0.08)
=$100 - $50
= $50
Sales taxes and individual income taxes
