Answer:
Fixed price contract
Explanation:
A fixed price contract states that price for services rendered is fixed as mentioned in the contract irrespective of time taken and resources used.
Price cannot be revised in case effort and time has increased more than expected. In this case, Mister Plow cannot ask for more money as service contracts are fixed price contracts and terms of contract including price cannot be changed.
Answer:
Correct option is (D)
Explanation:
Employees, employers and self employed are supposed to contribute to fund social security and medicare.
Contribution made by each party comes under different categories. Employees contribute to social security and medicare in the the form of FICA taxes which could be withheld by the employers. Employees pay 50 percent and the remaining 50 percent is paid by the employer.
Self employed contribute in the form of self employed taxes.
Answer:
Annual market potential = $85,848 millions
Explanation:
The annual market potential is the expected sales value for the soft drink product for a year should the maximum number of potential consumers purchase the product at the average price.
Annual market potential = Average price × No of consuming unit × consumption rate per annum
Maximum number of consuming unit = 80%× 300 million =240 million
Consumption rate per buyer per annum = 365
Average price = $0.98
Annual market potential ($) = 0.98× 240× 365 =$85,848 millions
Annual market potential = $85,848 millions
Answer:
11%
Explanation:
To address this exercise, we need to recall the formula for dividend discounted model (DDM). The DDM is stated as below:
Stock intrinsic value = Next year dividend/(Required rate of return - Long term growth)
Rearrange a bit this formula, we have:
Next year dividend/Stock intrinsic value = Required rate of return - Long term growth, or
Dividend yield = Required rate of return - Long term growth
Putting all the number together, we have:
6.4% = Required rate of return - 4.6% or Required rate of return = 11%
