Answer:
The price of the stock today is $54.61
Explanation:
The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:
Assuming that the dividend is paid at the end of the period.
Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]
Where,
- r is the required rate of return
- n is the number of years of annuity
The price of the stock today is,
P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]
P0 = $54.607 rounded off to $54.61
Answer:
Option C The degree of uncertainty about the actual outcome of a decision.
Explanation:
The reason is that risk is the vulnerability of an desired outcome and which can be measured. So if toss a coin there are 50% chances that head will appear and I will loose money and 50 percent chances that tail will appear and I win money. So undesired outcome here is head appearing because I will loose money and it has 50% chances. So risk result in undesired outcome in an uncertain environment.
Answer:
The Legume Division's net operating income last year was d. $45,000
Explanation:
Turnover (on operating assets) = Total Sales/ Operating assets
From the formula,
Operating assets = Total Sales/Turnover (on operating assets) = $900,000/3 = $300,000
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
At the Legumes Division of Gervani Corporation, Total investment = Operating assets = $300,000
Net Income = 15% x $300,000 = $45,000
Answer:
The labor cost per unit is lowest for China and is $0.40 per unit
Explanation:
Country Labor Wage per Day Wages per Production Labor cost
count per labor Day units per day per Unit
L w W=L×w P l=W÷P
Myanmar 7 $2.50 17.50 38 $0.46
China 9 $2.00 18.00 45 $0.40
Billings/ 4 $57.00 228.00 102 $2.24
Montana
The labor cost per unit is lowest for China and is $0.40 per unit
Answer:
156.6%
Explanation:
Given:
Cosi Company's Incurred over head for the next period = $830,000
Expected labor hours = 53,000
Cost of labor = $10.00 per hour
Thus,
Total labor cost = 53,000 × $10.00 = $530,000
Now,
the Cosi Company's predetermined overhead rate will be calculated as:
Predetermined overhead rate = Incurred overhead / Total labor cost
on substituting the respective values, we get
Predetermined overhead rate = ( $830,000 / 530,000 ) = 1.566
or
Predetermined overhead rate = 1.566 × 100% = 156.6%
