We are given with the data: A = <span>$6,951.20 per semi-annum that is $13902.4 per annum, i equal to 1.75% compounded semi-annually, and asked for P or the present worth to maintain the withdrawal for 15 years.
the formula to be used is attached in the file (third one). substitute the i = 0.0175, n = 30, A = </span>$13902.4 and get P.
Answer:
b) overall low-cost leadership
Explanation:
By Michael Porter, this is one of the <em>generic strategies</em>. This strategy implies that the company is dominating the market by securing a low-cost approach across all channels (supplier side, customers, rivals). This is generally achieved by low operating costs and by the factors listed out in the example itself (influencing rivals and suppliers). This type of strategy puts a company ahead of most of its competitors.
Answer:
$1 million
Explanation:
Section 179 deduction of the IRS code was enacted to help small business owners take depreciation deductions for certain assets ( capital expenditure I.e. the money spent on acquiring and maintaining fixed assets such as buildings and equipments ) in one year rather than continuous depreciation over a long period of time.
The new law increased the maximum deduction from $500,000 to $1 million.
For example: lets say you buy a computer for your office, under section 179 you can deduct the full cost of your computer in one year. This a very okay because the life span of your computer is short
To increase profits while taking low to no risk as to their current funds<span />
Answer: $2.61
Explanation:
We can use the Gordon Growth Model here of which the formula is,
P = D1 / r – g.
Where
P is the stock price
D1 = the annual expected dividend of the next year.
r = rate of return.
g = the expected dividend growth rate (assumed to be constant)
Making D1 the subject of the formula to find the next dividend will help us solve for the recent Dividend.
D1 = P (r-g)
= 45.20 (0.099 - 0.039)
= $2.712
$2.712 is the next dividend.
To calculate the most recent Dividend we can use the growth rate in the following manner,
D1 = D0(1 + g)
D0 = D1/(1+g)
D0 = 2.712 / 1.039
D0 = $2.61
The dividend the company just paid is $2.61
