Answer:
Equal to
Explanation:
When the price of a corporation's common stock is equal to the present value of discounted future cash flows, it will show a true representation of the value of the firm and in turn investors will have confidence in the company and its projected performance.
As new shares are issued from a company the company issues the shares at a forecasted future value based on the expected cash flows of the business.
For example if a company has estimated it will have cash flow of $12 million in the next one year, and it wants to issue 6 million shares. The value of the issued shares will be $12 million/6 million= $2. The firm is leveraging on it forecasted performance and cash flows.
Answer:
Barre's sales revenue next year is $71,500
Explanation:
The estimated total sales volume for 4 quarters next year is 5,200 units which implies that in each quarter sales volume of 1300 units is expected,applying the prices as given the sales revenue next year is analyzed below:
First quarter (1300*$13) =$16,900
Second quarter(1300*$13) =$16,900
Third quarter(1300*($13+$1.5)) =$18,850
Fourth quarter(1300*($13+$1.5)) =$18,850
Total sales revenue next year $71,500
Barre's total sales revenue for next year is $71,50 having applied the price increase of $1. 5 per unit in the third and the last quarter
The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves. All four affect the amount of funds in the banking system. The discount rate is the interest rate Reserve Banks charge commercial banks for short-term loans.
Answer:
The company must sell 10,00 products to break even
Explanation:
If you use the approached suggested in the question, you can solve for break even quantity by setting revenue to equal cost
R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000
<u>Double check: </u>
10,000 products sold as $9 would fetch $90,000 in revenue
Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs
=>The solution is correct
Answer:
a. True
Explanation:
The success of a new product development needs to establish effective organization for the management of the development process. Organizations should choose product managers, departments for new products, they should incorporate venture teams, and many more. Some of the important factors are companies should adopt multi functional teams and develop new multiple concepts for the products.