Answer:
r = 0.075 or 7.5%
Option a is the correct answer.
Explanation:
The required rate of return is the minimum return that the investors require on a stock based on the risk associated with that stock. To calculate the required rate of return on a preferred stock, we divide the dividend provided by the preferred stock by the market price of the stock.
r = Dividend / Market Price
r = 6 / 80
r = 0.075 or 7.5%
Answer:
1) Equal to
2) Efficient
3) Equal to
4) Total
Explanation:
1) Marginal cost pricing is when you price the good equal to the extra cost of producing an extra good, so for example if I am a shoe manufacturer and the cost of producing an extra pair of shoe is $4 and I price the pair of shoe at $4 I am using marginal cost pricing.
2) When the producer is using marginal cost pricing the output produced is efficient as there is no dead weight loss and efficient level of output is produced.
3,4) If I produce 10 pairs of shoes and they cost me $500 then my average total cost for the pair of shoes is 500/10 = $50 and if I keep the price of the shoe at $50 I am using average cost pricing, so average cost pricing is keeping price equal to the average total cost.
The answer is : True. What is considered a good business, includes how people are treated, how trust is built and maintained and how relationships are managed. Ethical actions played an important role in these other dimensions of business too.
Answer:
(A) Investment of 6,700 discount payback period 1.82
(B) Investment of 8,800 discount payback period 2.34
(C) Investment of 11,800 discount payback period 3.06
Explanation:
We will discount each cash flow at 13%
3539.823
3837.4187
4227.606
3250.5893
We need to look at which year we get the investment amount
We will do: accumalted cash flow less investment
and then divide by the last year to get at which portion of this year we achieve payback period
(A) 6,700
3540 + 3837 = 7377
It will be between the first and second year
6,700 - 3,540 = 3160
3160/3837 = 0.8235
payback period 1.8235
(B) 8,800
3540 + 3837 + 4228 = 11605
It will be between second and third year
we do 8,800 - 7377 = 1423
1423/4228 = 0.3365
payback 2.3365
(C) 11,800
3540 + 3837 + 4228 + 3251 = 14856
It will be between third and fourth year
11,800-11,605 = 195
195/3251 = 0.0599 = 0.06
payback 3.06