Answer:
Po = <u>D1</u> + <u>D2</u> + <u> D3</u>
(1 + Ke) (1 + Ke)2 (1 + Ke)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28
</u>
(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>
1.1 (1.1)2 (1.1)3
Po = $10.91 + $10.33 + $21.04
Po = $42.28
Explanation:
The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.
Answer:
C. are unaffected by the degree of operating efficiency in a given budget period.
Explanation:
Fixed over head costs or indirect costs are cost that do not vary with the level of out put. They are essential cost required to manage a business.
These costs are the same months by Months and are needed for the smooth running of the business. They are also unaffected by the degree of operating efficiency in a given budget period.
Examples of fixed overhead are rents, salaries, depreciation , insurance and taxes. It should however be noted that if there is an increase in sales compared to the budgeted sales of the company, there could be an increase in fixed overhead cost due to additional employees and administrative staff.
Answer: operating budget
Explanation:
In the given scenario in the question, we can deduce that the management is in the process of planning the operating budget of the company.
The operating budget simply refers to the money that's needed by the company for it to run efficiently. It is made up of the manufacturing costs, sales budget, selling expenses, and the administrative expenses.
What kind of absurd logic is that?
oh, let me not talk for a few days maybe I might end up sounding like a girl. yeah, good luck with that mate.
