Net operating income was $24000
Fixed expenses=$96000
Sales=$300000
cost per unit=$20
unit sales=$15000 units
CM=$120,000
CM per unit=$8
BE units=FC/CM per unit=96000/8=12,000 units
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
False. They are, in fact, significantly less common.
Answer: a. less than the socially optimal price, greater than the socially optimal quantity
Explanation:
The steel mill is producing steel and selling at a rate that does not account for the pollution that it is causing. Because of this, it is selling at a lower equilibrium price than what it would had the Pollution been accounted for.
The Steel Mill is also selling quantity that is greater than what would be considered socially optimal because the socially optimal level would account for the pollution and adjust in such a way that the Pollution is minimized
Answer:
The answer is "- $ 575.68".
Explanation:
please find the attached file.
