Sheffield Corp. can produce 100 units of a necessary component part with the following costs: Direct Materials $15000 Direct Lab
1 answer:
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Answer:
After 14 years, the compounded value of the invested amount = $733,200.27
Explanation:
What the question is asking us to find is the future value of an amount that is invested over a period of 14 years, compounded at 15% semiannually.
The formula is:
where ;
FV = Future value
PV = present value (principal)
i = nominal interest
n = compounding frequency in a year
t = total number of years.
Note: for investments that are compounded annually, n = 1, because compounding is once in a year, for those compounded semiannually, n=2, because compounding is twice in a year, for compounding done quarterly, n = 4 because there are four quarters in a year and so on.
Putting, the values into the equation above;
= $733,200 (to the nearest dollar)
Answer:
$105.60
Explanation:
Given: Total dividend paid= $1100000.
Retained earning= $3300000.
Number of outstanding shares= 725000.
PE ratio= 17.4 times.
First finding earning per share.
Formula;
⇒
⇒
∴
Hence, earning per share (EPS)= $6.07.
Now, finding the appropriate stock price.
Price of stock=
⇒ Price of stock=
∴ Price of stock=
Hence, $105.60 would be the appropriate price of stock.