Answer:
The best estimate of the company’s cost of equity is 11.99%.
Explanation:
CAPM based required return = 5% + 1.1*7%
= 12.7%
Dividend model required return
35 = (1.40*1.07)/(r - 0.07)
r - 0.07 = 0.0428
r = 11.28%
The best estimate of the company’s cost of equity is the mean of two = (12.7% + 11.28%)/2
= 11.99%
Therefore, The best estimate of the company’s cost of equity is 11.99%.
Answer:
$3979.79
2 $4023.63
Explanation:
Here is the full question used in answering this question :
Find the interest earned on $15,000 invested for 6 years at 4% interest compounded as follows. a. Annually b. Semiannually (twice a year) c. Quarterly d. Monthly e. Continuously
the formula for determining interest earned is :
future value - present value
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m = number of compounding
1. 15,000 ( 1 + 0.04)^6 = 18979.79
18979.79 - 15,000 = $3979.79
2 1. 15,000 ( 1 + 0.04/2)^12 = 19023.63 = $4023.63
Ralph is acculturating its new employees through assimiliation, it is a way of or a progress in absorbing ideas or information and to be able to understand them. It is seen in the scenario above of how Ralph encourages the new hires to learn the norms and values of the orgaization, in which they should learn and understand. This is the process of assimilation.
Calculate fixed cost per unit
357,000÷21,000=17 per unit
Fixed cost for 19000 units
17×19,000=323,000
Calculate variable cost per unit
309,750÷21,000=14.75
variable cost for 19000 units
14.75×19,000=280,250
So the answer is
$323,000 fixed and $280,250 variable
Hope it helps!
Answer:
Has capacity constraints in the form of limited resources
Explanation:
When the company has capacity constraints in the form of limited resources they should prioritize those goods with highest <em>contribution margin per unit of the limiting factor</em> instead of goods with the <em>highest contribution margin per unit</em>. This ensures that resources are distributed first to where they are more profitable.
Therefore, A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision when the company has capacity constraints in the form of limited resources.
