I got to think about this again. Come back later! X-322.22
Answer:
Required rate of return is 6.97%
Explanation:
The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:
Stock price =dividend/required rate of return
stock price is $80.40
required rate of return is unknown
the dividend on the preferred stock is $5.60
required rate of return=dividend/stock price
required rate of return =$5.60/$80.40=6.97%
The required rate of return based on the stock price and dividend information provided is 6.97%
Answer:
$2,685
Explanation:
Calculation to determine the machine's net present value
NET PRESENT VALUE
Year Cash flow*Discount factor at 8% =Discounted Cash flows
0 $ -40,000*1= $-40,000
1 $ 12,000*0.9259= $11,111
2 $12,000*0.8573=$10,289
3 $ 12,000* 0.7938=$9,526
4 $16,000*0.7350=$11,760
NET PRESENT VALUE $2,685
($-40,000+$11,111+$10,289+$9,526+$11,760)
Therefore the machine's net present value is $2,685
Answer:
Option D
Explanation:
The Utilitarian Strategy analyses an intervention in consideration of its effects or results; that is, the net advantages and expenses to all different participants.
It aims to accomplish the maximum good for the greatest amount while producing the least amount of suffering or preventing the most suffering.
In a business setting, this method may focus on a statistical methods of likely results, a traditional cost / benefit calculation, or evaluation of the potential usefulness of a result for different group participants.
