Answer:
- ($51,306)
Explanation:
Given that,
Loss of Contribution = $75,000
Fixed costs will be eliminated by dropping the CUP line = $23,694
Net loss on dropping cup line:
= Loss of contribution - Gain on fixed costs on dropping cup line
= $75,000 - $23,694
= - ($51,306)
Therefore, the net effect on dropping the cup line on net income is $(51,606).
Answer:
Current Value = $31.50
Explanation:
The stock price formula in general is:
Where
P is the stock price
D is the dividend
g is the growth rate, discount rate
Now, we have to find the sum of all the prices in each year:
Current Value = $31.50