Answer:
12.18%
Explanation:
Company selling price in US = $55,000
(which is equal to price with 20% margin)
= 27,363 pounds × $2.01
= $55,000
Now the exchange rate increased to $2.15 per pound,
so here the manufacturing cost of the car will increase according to the increase in the exchange rate.
The selling price remains constant, then the profit margin is as follows;
Manufacturing cost of the car = 22,803 pounds × $2.15
= $49,026.45
Selling price = $55,000
Profit margin:
= Selling price - Manufacturing cost
= 55,000 - 49,026
= $5,973.55
Margin percentage = Profit margin ÷ Manufacturing cost of the car
= $5,973.55 ÷ $49,026.45
= 12.18%
Answer:
Required rate of return = 12.2%
Explanation:
According to the dividend growth model the price of a stock is
D*(1+G)/R-G
D= dividend
G=growth
R= Required rate of return
In order to find the required rate of return we will put the values given to us in the question into the formula.
D=5
G=2%
Price = $50
50=5*(1+0.02)/R-0.02
50R-1=5.1
50R=5.1+1
50R=6.1
R=6.1/50
R=0.122=12.2%
Answer:
A. 200 units per order
Explanation:
To solve this you have to use the <em>economic order quantity</em> formula:
Where:
Demand = 4,000
S= supply cost = ordering cost = 20
H= holding cost = 4
Economic Order Quantity = 200
<em><u>How to Remember:</u></em>
Demand per year and order cost goes in the dividend.
Holding cost goes in the divisor.
Answer:
Explanation:
$100,000 debit to the Equipment asset account because you are recording the actual original cost of the equipment (as is required by the Cost Principle of Depreciation). You should also credit the Accumulated Depreciation: Equipment account for $75,000 to show that the equipment has already depreciated for this amount.
