Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
Answer:
$65,333
Explanation:
As we know,
Sales price = Variable cost + Contribution cost
Sales price = Variable cost ratio + Contribution margin ratio
100% = 30% + Contribution
Contribution = 100% - 30%
Contribution = 70%
Fixed cost = $19,600
Break even sales = Fixed cost / Contribution margin ratio
Break even sales = $19,600 / 30%
Break even sales = $19,600 / 0.3
Break even sales = $65,333.
Answer:
1. conservatively
2. elevator pitch
3. Smile
Explanation:
You want to dress formally at an interview not casual. An elevator pitch is where you briefly try to sell yourself, in this case you would want to sell yourself to the employer to showcase your qualifications so they hire you. Joking may not be appropriate at an interview but smiling makes you come off as nice.
Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,937 + 3.96x
where y = total cash wash costs and x = rental returns
fixed costs = $2,937 per month
variable cost = $3.96 per car washed
