Answer:
The cost of equity is "10.00%".
Explanation:
The given values are:
After tax profits,
= $20 million
Number of shares,
= 1 million
Dividend cover ration,
= 4.0
Market capitalization,
= $50 million
Now,
The earning per share (EPS) will be:
= 
On substituting the values, we get
= 
= 
($)
The dividend cover ratio = 
On substituting the given values, we get
⇒ 
⇒ 
⇒ 
($)
Market per share price will be:
= 
= 
= 
($) per share
So,
The cost of equity capital will be:
= ![[\frac{Expected \ dividend}{Market \ price} ]+Growth \ rate](https://tex.z-dn.net/?f=%5B%5Cfrac%7BExpected%20%5C%20dividend%7D%7BMarket%20%5C%20price%7D%20%5D%2BGrowth%20%5C%20rate)
On putting the values in the above formula, we get
= ![[\frac{5}{50} ]+0.00](https://tex.z-dn.net/?f=%5B%5Cfrac%7B5%7D%7B50%7D%20%5D%2B0.00)
= 
= 
i.e., 
%
Answer:
See below
Explanation:
Basic models Deluxe models
Sales price $44 $54
Variable costs $25 $25
Contribution margin $9 $29
×
Sales mix 1 3
Total contribution margin $9 $87
Contribution margin per unit = $9 + $87 = $96
Weighted contribution margin= Total contribution margin / Units
= $96 / $4
= $24
Break even point = Total fixed costs / Weighted contribution margin
Break even point = $1,441 / $24
Break even point = 60 units
•Basic units = 60 × 63.33% = 38 units of basic
•Deluxe units = 60 × 43.33% = 26 units of Deluxe units
Answer:
The value of money factor (future value of a lump sum for three year at 10% interest rate) is 1.331
we will return the principal and 33.1% of the principal as interest
Explanation:
we have to calcualte the FV of a principal of $1 after 3 year exposed to 10% interest rate:
$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss
When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).
Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.
To know more about operating refer here:
brainly.com/question/15080057
#SPJ4
Answer:
The correct word for the blank space is: general contractor.
Explanation:
A general contractor is in charge of the everyday supervision of the activities within a construction. The general contractor achieves this by organizing all the employees within the construction, providing them with all the necessary tools and legal permits to perform their duties. General contractors are also in charge of the communication of information to all relevant individuals involved in the construction.
