Answer:
B. Annuity due
Explanation:
Annuity Due
This is the repetition of money paid that is made at the beginning of each defined period. Period could be monthly, quarterly, yearly and so on. A common example used in explaining this is Rent paid at the beginning of each month. Annuity due have all payments in the same amount, like in this case, Janis is going to be paid $500 a month for 48 months. Meaning the amount tonbe paid doesnt changes. Also another characteristic of annuity payments is that all payments are paid at thesame time interval. Again, here, Janis is being paid every month at the same time interval NOT, today monthly and the next payment weekly.
It is a series of payments that is made or received over a predetermined period of time.
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
- D0 is the dividend today or most recently paid dividend
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 8%
- r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
Answer:
The maximum expected output capability of a resource or system. - Is the definition of <u>Design Capacity.</u>
An approach to a firm's acquisition of resources that will either lead, lag, or track the customer demand. - Is the definition of <u>Capacity Expansion Strategy.</u>
A capacity acquisition strategy where expansion takes place before the demand materializes and never falls behind the capacity growing requirements. - Is the definition of <u>Lead the Demand.</u>
The expected output capability of a resource or system after accounting for scheduled down time (like for maintenance).- Is the definition of <u>Effective Capacity.</u>
A capacity acquisition strategy where expansion takes place only after the demand materializes and never exceeds the demand. - Is the definition of <u>Lag the Demand.</u>
The minimum rate of return demanded by the firm is 12%. The closest turnover in the division is 4.02. Here option B is the correct answer.
A company's turnover is the total of its sales during a specific time period. It is sometimes referred to as "income" or "gross revenue."
The typical quantity of assets required to carry out continuing business activities is referred to as average operational assets. This number may be incorporated into the operational assets ratio, which evaluates how much of these assets make up overall assets owned by a company.
Divide the total number of separations that took place within the specified time period by the average number of employees to get your turnover rate. To express that amount as a percentage, multiply it by 100.
Turnover = Sales/Average operating assets
= 25720000/6400000
Turnover = 4.02
To learn more about turnover
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Answer:
$ 1252
Explanation:
Since we have been given the annual rate, but we have been asked for monthly payments, the first thing we should do is calculate the monthly rate.
R = (1+ APY) ^ 1/12 -1
Where:
R: monthly rate
APY: annual rate
R= (1+0.057)^1/12-1
R= 0.0046
Then, having monthly rate data, we can calculate the monthly payments. For that, we will use the formula for the present value of an ordinary annuity.
PMT= (P*R) / (1-(1+R)^(-n))
Where:
PMT: Monthly payments
R: monthly rate
P: Present value
n: Period
PMT= (220,000 * 0.0046) / (1-(1.0046)^-360))
PMT= 1,252
