What risk-related concept does the following question attempt to measure? In approximately how many years do you plan to retire?
1 answer:
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Answer:
Ans. Current Share Price=$33.85
Explanation:
Hi, we first have to establish the dividend for the first 3 years and the dividend when the growth rate falls off to a constant rate of 8% with the formula to find the present value of a perpetuity with constant growth rate. From there, we need to bring all the above cash flows to present value and that is the price of the share. The formula is as follows.
To find D1, D2,and D3, we have to do this.
D1=Do(1+0.19)
D2=D1(1+0.19)
D3=D2(1+0.19)
Since 0.19 is the growth rate for 3 years. Everything should look like this
notice that the sign of the last part do not coincide with the formula, that is because the growth rate from the first 3 years is -8%.
Best of luck.
Answer:
Attached are the detailed solution tables for
A) complete the activity rate for each activity is a general question covering so solution starts from B
B) calculation of the activity rate for each activity: shown in the attached table
C) activity cost per unit : alpha = $99.81, Beta = $125.41, 0mega = $175.78
D ) The activity unit costs are not equal across all three products because of different activity bases such as machine hours, setups, parts and inspection hours that also determines the activity cost
Explanation:
A) complete the activity rate for each activity is a general question covering so solution starts from (B)
B) calculation of the activity rate for each activity: shown in the attached table
C) Calculation of activity cost of all products
activity cost of each product = use of product activity * activity rate
production = ($80 * Machine hours of each product )
setup = ( $100 * number of setups for each product )
Material handling = ( $30 * number of parts of each product )
Inspection = ( $50 * number of inspection hours for each product )
Product engineering = ( $280 * number of engineering hour for each product )
Activity cost per unit = total cost of activity of each product / unit produced for each product
D) The activity unit costs are not equal across all three products because of different activity bases such as machine hours, setups, parts and inspection hours that also determines the activity cost
