Answer: $0.25
Explanation:
Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.
The present value of its growth opportunities (PVGO) will be:
= $50 - ($5.97/12%)
= $50 - ($5.97/0.12)
= $50 - $49.75
= $0.25
Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.
Answer:
to obtain 10,000 hours of light you would need:
option 1)
10 incandescent light bulbs costing $0.50 each = $5
this incandescent light bulbs will consume 60 x 10,000 = 60,000 watts or 60 kWh = 60 x $0.10 = $6 in electricity
total costs using incandescent light bulbs = $5 + $6 = $11
option 2)
1 fluorescent light bulb = $4
this fluorescent light bulb will consume 15 x 10,000 = 15,000 watts or 15 kWh = 15 x $0.10 = $1.50
total costs using fluorescent light bulbs = $4 + $1.50 = $5.50
Answer:
Total $1,271.0564
Explanation:
We have bond of 10 years ago, so the bond is left with 5 years of life
<u>we need to calculate the present value ofthe cuopon payment:</u>
C 50 (1,000 x 5%)
time 10 (5 years 2 payment a year)
rate 0.02 (4% annual divide by 2 to get semiannually)
PV $449.1293
<u>and the present value of the principal</u>
Maturity 1000
time 5
rate 0.04
PV $821.9271
<u>We add both to get the present value ofthe bond</u>
PV c $449.1293
PV m $821.9271
Total $1,271.0564
Answer:
D. All of the above.
Explanation:
Absorption costing is the method in which cost is charged on the basis of the actual expenses and facilities absorbed ion the production.
This basically charges usually more cost, in comparison to activity based costing.
In this manner since cost charged is more, the profit for the company is reduced. Accordingly the managers then prefer to produce as much as they can.
The main focus of management is for production.
Even in case this requires maintenance they put the resources into production rather than maintenance.
Thus, all of the statements are true.
Answer:
<em>Small changes in price can have big effects on the number of units sold and also on company profit</em>
<em></em>
Explanation:
Small change in price will definitely have an effect on the amount of units sold due to a corresponding change in demand that will follow this change, and also will affect the amount of profit that the company generates. <em>This changes can either be positive or negative to the company</em>. Example is the increase in price of coca-cola might trigger customers into switching to pepsi-cola, resulting in a reduced demanded quantity which means less units are produced. The overall effect of these will leave the company with less profit.
