Answer:
Price per share = $78.75
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
<em>Note Do (1+g) represents the expected dividend in the first year</em>
DATA:
Do (1+g) = 3.15
g= 8%
k= 12%
Price per share = 3.15/(0.12- 0.08) = $78.75
Price per share = $78.75
Answer:
a) Total Interest Paid in 24 months is $1680
b) Total Cost of the car is $12180
c) Monthly Payment is $420
d) Annual Percentage Rate is 10.47%
Explanation:
(a) Loan Amount = $8400
Interest Rate = 10%
Monthly Interest = 8400 x (10%/12)
= $70
Total Interest Paid in 24 months = 24 x 70
= $1680
(b) Total Cost of the car = Loan Amount + Interest Paid + Down payment
= 8400 + 1680 + 2100
= $12180
(c) Monthly Principal Payment = 8400/24
= $350
Monthly Payment = Monthly Interest Payment + Monthly Principal Payment
= 70 + 35
= $420
(d) Annual Percentage Rate = (1+ 0.10/12)12 - 1
= 0.1047
= 10.47%
Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,752 + 3.87x
where y = total cash wash costs and x = rental returns
fixed costs = $2,752 per month
variable cost = $3.87 per car washed
Answer:
3. How does the action I am proposing to take make me feel about myself?
Explanation:
According to Norman Vincent Peale, the following questions should be asked by Jake as he proceeds to make an ethical decision: How does the action I am proposing to take make me feel about myself?
According to Kenneth Blanchard and Norman Vincent Peale, authors of The Power of Ethical Management, there are three questions you should ask yourself whenever you are faced with an ethical dilemma:
1. Is it legal? Will I be violating civil law or company policy? Will I be violating the student code of conduct?
2. Is it balanced? Is it fair to all parties concerned both in the short-term as well as the longterm? Does it promote win-win relationships?
<u>3. How will it make me feel about myself? Will it make me proud? Would I feel good if my decision was published in the newspaper? Would I feel good if my family knew about it?
</u>
Answer:
b. 60%
Explanation:
The computation of percentage is assigned to Cost of Goods Sold is shown below:-
$ %
Sales $300 $100
Cost of Goods Sold $180 $60 ($180 ÷ $300) × 100
Gross Profit $120 $40 ($120 ÷ $300) × 100
Operating Expenses $45 $15 ($45 ÷ $300) × 100
Net Income $75 $25 ($75 ÷ $300) × 100
Percentage assigned to cost of goods sold = Cost of goods sold ÷ Sales × 100
= $180 ÷ $300 × 100
= 60%
Therefore for computing the percentage is assigned to Cost of Goods Sold we simply applied the above formula.
