Answer:
A)
risk free rate = 8%
market rate = 15%
Xyrong's beta = 1.2
pays 40% of income in dividends
latest EPS = $10
ROE = 18%
k = 8% + (1.2 x 7%) = 16.4%
g = ROE x (1 - 40%) = 10.8%
div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432
stock price = $4.432 / (16.4% - 10.8%) = $79.14
B)
div0 = $4
div1 = $4.432
price0 = $103
price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69
holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%
That means more people in the market are purchasing the company's product. This tends to happen due to the fact that there are lots of people purchasing the products. That's where the word 'penetration' come from since people are starting to see it as totally in demand.
Answer:
Franchise.
Explanation:
A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name.
The bowed-outward shape of the production possibility frontier illustrates that the <u>opportunity cost</u> of one good in terms of the other depends on how much of each good the economy is producing.
<h3>What is Production Possibility Frontier?</h3>
The production possibility frontier (PPF) is a curve in economics that depicts the maximum amounts that two goods can create if they both rely on the same limited resource for production.
From the attached picture below, Let's assume that:
- The vertical product is: wine
- The horizontal product is: cotton
The bowed-outward shape of the production possibility frontier illustrates that the <u>opportunity cost</u> of one good in terms of the other depends on how much of each good the economy is producing.
Learn more about the production possibility frontier (PPF) here:
brainly.com/question/25071524
Answer: See explanation
Explanation:
The unit selling price of sale mix will be:
= (1200 × 60%) + (452 × 40%)
= 720 + 180.8
= 900.8
The unit variable cost of sales mix will be:
= (450 × 60%) + (242 × 40%)
= 270 + 96.8
= 366.8
The unit contribution margin of sales mix will be:
= 900.8 - 366.8
= 534
Break even sales unit will be:
= 348,168 / 534
= 652
The break-even point in units of X will be:
= 60% × 652
= 391.2
The break-even point in units of Y will be:
= 40% × 652
= 260.8