Answer:
4%
Explanation:
The Gordon constant growth dividend model =
Value = dividend / cost of capital - growth rate
Subsisting with the values given in the question gives :
25 = 2.5/0.14 - g
To solve for g,
1. multiply both sides by 0.14 - g
25(0.14 -g) = 2.5
2. divide both sides by 25
0.14 - g = 0.10
g = 0.04 = 4%
The main function of our large intestine is to absorb the water that is present in the insoluble food components we take in and its by-product would be the waste that is excreted from the body as faeces. The large intestine is followed by the anus and is preceded by the small intestine.
Answer:
1. 4,350 helmets
Explanation:
1. The computation of the number of helmets is shown below:
= (Total fixed cost + operating income) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $76 - $44
= $32
So, it would be
= ($49,600 + $89,600) ÷ ($32)
= ($139,200) ÷ ($32)
= 4,350 helmets
2. The contribution margin income statement is presented below:
Sales (4,350 × $76) $330,600
Less: Variable cost (4,350 × $44) ($191,400)
Contribution margin $139,200
Less: Total Fixed cost ($49,600)
Operating income $89,600
Answer:
$498.94
Explanation:
1 year interest rate = 5%
11 year interest rate = 7%
10 year spot interest rate at end of 1 year = [{(1+0.07)^11 / (1+0.05)}^(0.1) - 1]
10 year spot interest rate at end of 1 year = [(2.104852/1.05)^0.1] - 1
10 year spot interest rate at end of 1 year = 1.07202083615 - 1
10 year spot interest rate at end of 1 year = 0.072021
10 year spot interest rate at end of 1 year = 7.202%
Face value = $1,000
Forward Price of contract = $1000/(1+0.0720)^10
Forward Price of contract = $1000/2.00423136
Forward Price of contract = 498.944392915
Forward Price of contract = $498.94
