Answer:
dollar cost averaging
Explanation:
Dollar cost averaging is a type of investment plan where the customer (investor) will contribute a specific amount of money every fixed period of time. In this case, our investor is investing $250 every month regardless of the price of the securities that she is investing in. Some months she will be able to buy more or fewer securities than other months.
Answer:
royalties
Explanation:
Based on the scenario being described within the question it can be said that in the context of business these obligations are referred to as royalties. Royalties are shared obligations in which the franchisee agrees to pay the franchisor part of the profits that they make from using their brand name or products. Such as is being illustrated in this scenario.
Answer:
Direct material price variance= $400 favorable
Explanation:
Giving the following information:
Actual quantity purchased 200 units
Actual price paid $8 per unit
Standard price $10 per unit
<u>To calculate the direct material price variance, we need to use the following formula:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (10 - 8)*200
Direct material price variance= $400 favorable
Answer: 9.3%
Explanation:
If the company continues to payoff its dividend at current rate, then the price of stock will be:
= Dividend/Rate of return
= 1/5%
= 1/0.05
= 20
Now, when the company isn't expected to pay any dividends for the next two years, the price of stock at the end of year 2 will be:
= Dividend/Rate of return
= 1/5%
= 1/0.05
= 20
Price of stock today will be the present value of p2. This will be:
= 20/(1.05^2)
= 20/1.1025
= 18.14
Loss in value= (20-18.4)/20 × 100
= 1.86/20 × 100
= 9.3%
Okayyyyy that’s fine w me