Answer:
Minimum transfer price = $86
Explanation:
Pump Division is operating at full capacity, hence it has no excess capacity
This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.
Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division at a price lower than the external price of $86. Any price lower than $86 would result into a loss in contribution.
To maximize and optimize the group profit, the minimum transfer price should be set as follows:
Minimum transfer price = External selling price at which Pump Division sells to outside customers
Minimum transfer price = $86
Answer:
True
Explanation:
The statement is true because according to dividend growth method the price of the given preferred stock is $81.25.
Formula to calculate the prce of share using Dividend growth method is
Price of share = D0 / (Rate of return - Growth rate)
In case of preferred stock a stable dividend is paid and there is no growth in the dividend payment.
so
Price of share = D0 / (Rate of return - 0)
Price of share = D0 / Rate of return
Share price = $6.5 / 0.08
Share Price = $81.25
(Not completely sure) Tate and Anna should purchase dental insurance
I do believe your answer would be true.
<span>The market refers to the buying and selling abilities within a ocal, state, or national economy.</span>
