Answer:
correct option is $12,668
Explanation:
given data
net present value = $85,000
time = 10 year
rate of return = 8%
solution
we apply here formula for Present Value of annual additional cash flow that is
Present Value of annual additional cash flow = Annual cash flow × present value factor for an annuity ............................1
put here value
$85,000 = Annual cash flow × 6.71
Annual cash flow = $12,668
so here correct option is $12,668
Answer:
1. $12.31
2. -11.96%
Explanation:
a) Calculation to determine the intrinsic value of a share of Xyrong stock
First step is to calculate the Required Return
Using this formula
Required Return = Risk-free Rate + [Beta * (Expected Market Return - Risk-free Rate)]
Let plug in the formula
Required Return= 5.5% + [2.7 * (17% - 5.5%)]
Required Return= 5.5% + 31.05% = 36.55%
Second step is to calculate g using this formula
g = ROE * (1 - Payout Ratio)
Let plug in the formula
g= 18% * (1 - 0.25)
g= 13.5%
D0 = EPS0 * Payout Ratio = $10 * 0.25 = $2.50
P0 = [D0 * (1 + g)] / [r - g]
= [$2.50 * (1 + 0.135)] / [0.3655 - 0.135]
= $2.8375 / 0.2305 = $12.31
b). Holding Period Return = [P1 + D1 - P0] / P0
= [$8 + $2.8375 - $12.31] / $12.31 = -$1.4727 / $12.31 = -0.1196, or -11.96%
production for that product will increase.
Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".
Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.
Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.
Answer:
Closed facts.
Explanation:
In a situation of close facts the action has already been taken before now, and the researcher is to analyse it and determine best course of action.
On the other hand when there is an open fact situation the action has not taken place yet, and the future action can be influenced to give a favorable result.
For example Jeremy has identified a research question that relates to a transaction that the client completed several months ago. This is a closed fact situation.
