Answer:
$33,120,000
Explanation:
Calculation for What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Using this formula
Proper Cash Flow Amount = (Expected Cost of Selling + Cost of Building Manufacturing Plant + Cost of Grading)
Let plug in the formula
Proper Cash Flow Amount = ($10,500,000 + $21,700,000 + $920,000)
Proper Cash Flow Amount = $33,120,000
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $33,120,000
Answer:
$51
Explanation:
Given that,
Dividend paid next year, D1 = $3.06 per share
Growth rate of dividend per year, G = 6 percent per year
require a return on investment, Ke = 12 percent
Stock Price = D1 ÷ (Ke - G)
= 3.06 ÷ (0.12 - 0.06)
= $51
Therefore, I'll pay $51 for the company’s stock today.
Answer:
d. An annual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the next five years.
Explanation:
CHECK COMMENTS.
First, convert 6% into decimal. 6/100 = 0.06
1000*0.06 = 60 <- that is the amount of interest.
1000 + 60 = 1,060 <- first years total.
1060*.06 = 63.6
1060 + 63.6 = 1,123.6 <- second years total.
1,123.6*.06 = 67.416
1,123.6 + 67.416 = 1,191.016
rounding off, the answer would be $ 1,191 dollars.
Answer: B. to prove Stew-topia engaged in predatory pricing, you would need to prove that Stewtopia priced stew below average variable cost with the specific intention of driving 2 Live Stew out of business
Explanation:
Predatory pricing is the pricing of goods in such a way that it is so low that it is even below average variable cost. The logic being that in the Shortrun, if a firm cannot cover it's variable cost, it would have to shutdown.
Larry would therefore be correct in saying that to prove Stew-topia engaged in predatory pricing, it would need to proven that Stewtopia priced stew below average variable cost with the specific intention of driving 2 Live Stew out of business.