Answer:
$5,697,674
Explanation:
Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.
Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.
Formula to calculate the value of operation
Value of Operations = FCF / ( WACC - growth rate )
Value of Operations = $490,000 / ( 13% - 4.4% )
Value of Operations = $5,697,674
Answer:
$20
Explanation:
Price / earnings per share = 10
earnings per share = $2
price / $2 = 10
Price = $20
Answer:
The reasons for using the variable-cost approach include all of the following except
this approach provides the most defensible bases for justifying prices to all interested parties.
Explanation:
This is not part of the reasons for using the variable-cost approach. But options b, c, and d are certainly the reasons why the variable-cost approach is used. The variable-cost approach provides a differential analysis for decision-making. It assigns overhead costs to the period in which they are incurred, while other variable costs are assigned to the merchandise produced within that period. Thus, by excluding fixed manufacturing overhead cost, only the direct costs associated with production are used in accounting for the product's costs.
Answer:
The correct answer is letter "A": Brazil only.
Explanation:
Comparative advantage is the ability of an organization or individual to produce at lower opportunity costs. This is achieved by introducing efficient productivity strategies or achieving economies of scale.
For the case given, the comparative advantage of Brazil and Chile is based on labor productivity only. Then:
- <em>The comparative advantage of Chile on sugar</em> =
= 0.4 - <em>The comparative advantage of Brazil on sugar </em>=
= 0.5
Thus, <em>Brazil has a comparative advantage over Chile on sugar.</em>
The correct answer is: decrease; $195; $190; $165.
A study found the noise from rock concerts to be harmful.
To correct the externality created by the concerts, the government imposes a tax $30 on sale of each unit.
The price of tickets was initially $190.
After the imposition of the corrective tax, the price increased to $195.
This increase in price will cause the demand for tickets to decrease. As a result, the number of concert tickets sold will decrease.
The socially optimal price of the tickets is $195, as this price eliminates externalities.
The private market price is the price which was creating externalities, in this case, it is $190.
We can find the price received by the firms by deducting the tax amount from the new price.
The price received by the firms is
= $195 - $30
= $165
