Answer:
C
Explanation:
This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.
Answer:
$22
Explanation:
Given that,
Acquisition cost of product ALPHA = $24
Net realizable value for product ALPHA = $23
Normal profit for product ALPHA = $1.00
Market value (replacement cost) for product ALPHA = $21
By applying LCM, the per unit inventory value is determined by deducting the normal profit from the Net realizable value for product.
Per unit inventory value:
= Net Realizable Value - Normal Profit
= $23 - $1.00
= $22
Therefore, the proper per unit inventory value for product ALPHA applying LCM is $22.00.
Answer:
delight
Explanation:
Consumer satisfaction refers to the level of happiness that a customer derives from the consumption or use of any product or service. The information related to the customer satisfaction is derived from the surveys and ratings. These information helps in the betterment and improvement of the product and services.
Delighting the customer is a very important part of marketing. This helps in maintaining the customer relation.
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.1)1 = $2.20
D2= Do(1+g)2 = $2(1+0.1)2 = $2.42
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2
V1 = 2.20/(1+0.11) + 2.42/(1+0.11)2
V1 = $1.9820 + $1.9641
V1 = $3.9461
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n V2 = $2.42(1+0.03)/(0.11-0.03)(1+0.11)2
V2 = $2.4926/$0.0649
V2 = $38.4068
The current stock price is calculated as follows:
Po = V1 + V2
Po = $3.9461 + $38.4068
Po = $42.35
Explanation: This question relates to valuation of shares with 2-phase growth model. The value of shares in the first phase will be determined by discounting the dividend for the 2 years by cost of equity. The dividends for year 1 and year 2 were obtained by subjecting the current dividend paid (Do) to growth rate.
Moreso, the value of shares for the second phase was calculated by considering the last dividend paid(D2) and then subject it to the new growth rate. The adjusted dividend was then capitalized at the appropriate discount rate of the company.