Answer: $0.25
Explanation:
Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.
The present value of its growth opportunities (PVGO) will be:
= $50 - ($5.97/12%)
= $50 - ($5.97/0.12)
= $50 - $49.75
= $0.25
Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.
Answer:
Reserve price = $55
Expected revenue with a reserve price = $55
Expected revenue without a reserve price = $55
Explanation:
The auctioneer should set the reserve price siguiente:
Reserve price = ($30x0.5) + ($80x0.5) = $15 + $40 = $55
In the case of the expected revenue with the reserve price, only the bidder who has set a $80 value will pay the reservation fee, then the expected revenue will be the reserve fee of $55.
In the case of the expected revenue without the reserve price, both of the bidders will enter the auction for the item. Since the values are equally probable the expected profit without the reservation fee is equally $55.
Hope this helps!
Answer:
Explanation:
The meaning of terms is shown below:
Direct material: The material which is directly related to the production process of the product is known as direct material
Direct labor: The labor who are engaged in production process of the product plus their wages is known as the direct labor
Manufacturing overhead: All the indirect cost related to manufacturing is known as manufacturing overhead i.e depreciation on factory equipment, the salary of supervisor etc
The categorization is given below:
a. Windshield - direct materials
b. Engine - direct materials
c. Wages of assembly line worker - direct labor
d. Depreciation of factory machinery - manufacturing overhead
e. Factory Machinery lubricants - manufacturing overhead
f. Tires - direct materials
g. Steering wheel - direct materials
h. Salary of painting supervisor - manufacturing overhead
Answer:
D) $8,000 inventory, $0 land
Explanation:
Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land
Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).
Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.
Answer:
The correct answer is C. standard of living is ultimately determined by long-term growth.
Explanation:
The long-term path for economic growth is a fundamental issue of the study of the economy. The increase in the GDP of a country is usually considered as an increase in the standard of living of its inhabitants. Over long periods of time, even small annual growth rates, can have a significant effect. Thanks to its conjugation with other factors.
An annual growth rate of 2.5% would lead to GDP doubling over a period of 30 years. While an annual growth rate of 8%, it would lead to the same phenomenon in a period of only 10 years. Example: Some countries like Asian tigers. When a population increases to see improvements in living standards, GDP has to grow faster than that population. This analysis seeks to understand why there are very different rates of economic growth in some regions of the world.
