Answer:
The value of the stock today is $40.54
Explanation:
The price of the stock today can be calculated using the two stage growth model of Dividend Discount Model approach. The DDM values the stock based on the present value of the expected future dividends of the stock. The price of this stock today can be calculated as follows,
P0 = 2.27*(1+0.25) / (1+0.09) + [ (2.27*(1+0.25)*(1+0.02) / (0.09-0.02)) / (1+0.09) ]
P0 = $40.535 rounded off to $40.54
Answer:
$5.52 million
Explanation:
Data provided in the questions
Lose sales per year = $23 million
After tax operating margin on sales is 24%
By considering the above information, the yearly side effect for introducing the new product is
= Lose sales per year × After tax operating margin on sales
= $23 million × 24%
= $5.52 million
We simply multiplied the lose sale per year with the after tax operating margin on sales so that the yearly side effect could come
I guess the correct answer is the demand for tarot card readers has increased.
Assume that the hourly price for the services of tarot card readers has risen and sales of these services have also risen. One can conclude that the demand for tarot card readers has increased.
Answer:
Option (D) $270,000
Explanation:
Data provided in the question:
Variable overhead for 15,000 hours = $90,000
Fixed manufacturing overhead = $120,000
Now,
Variable overhead per hour = $90,000 ÷ 15,000
= $6 per hour
Therefore,
Variable overhead for 25,000 hours = $6 per hour × 25,000
= $150,000
Thus,
Total overhead cost
= Variable overhead for 25,000 hours + Fixed overhead cost
[ Fixed overhead cost is independent of number of units or number of hours]
= $150,000 + $120,000
= $270,000
hence,
Option (D) $270,000
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