Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
Answer:
The answer is: C) Have as its only remedy the right to recover dollar damages.
Explanation:
Since Sky breached its contract with Eagle, Eagle can sue Sky for money damages.
They can not seek a writ of replevin since the 100,000 units included in the contract were not unique nor identified. They were part of a much larger production lot of 200,000 units intended for various customers.
They also can't seek to obtain specific performance due to the same reasons as before, the units were not specific nor identified and other customers also need them.
Answer:
$7,000,000
Explanation:
Accounting for Non-Controlling Interest requires measurement of stock at Fair Value.
Total fair value of firm = Fair value of common stock + Fair value of preferred stock
= $62,000,000 + $8,000,000
= $70,000,000
90% of equity represent the extent of controlling interest in the firm. Thus, remaining 10% will be the value of non-controlling interest.
As already discussed, non controlling interest requires measurement at fair value:
Non-Controlling Interest = Total Fair Value x Percentage of Non-Controlling Interest
= $70,000,000 x 10%
= $7,000,000 (Answer)
Answer:
Third-degree price discrimination.
Explanation:
Third-degree price discrimination is when a seller charges different prices to different groups of people. This price discrimination can be based on age , occupation, sex eye
First degree price discrimination is when a sellers charges different prices to consumers based on their willingness to pay. This type of discrimination aims to eliminate consumer surplus.
Second degree price discrimination is when a sellers gives discounts for different quantities purchased. E.g. bulk purchases.
I hope my answer helps you
Based on the returns on Digital Cheese and Executive Fruit, the variance and standard deviation of each stock is:
Variance:
- Digital cheese = 56.8
- Executive fruit = 34.8
Standard deviation:
- Digital cheese = 7.5
- Executive fruit = 5.9
This means that Digital Cheese is riskier if held alone.
<h3 /><h3>What are the variances and standard deviations of the stock?</h3>
Using a spreadsheet, one can order the given returns and then find the variance using mathematical functions.
When this is done, the variances on Digital cheese and Executive fruit would be 56.8 and 34.8 respectively.
You can then take the square roots of these variances to find the standard deviations as 7.5 and 5.9 respectively.
Because Digital Fruit has a higher standard deviation, it is considered to be riskier in terms of returns.
Find out more on the standard deviation of returns at brainly.com/question/17191184.
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