Answer:
<em>$41.69</em>
Explanation:
Assuming the shares is on point and is not overrated or underrated we can <em>solve for dividends</em>
dividends/(r-g) = 35.50
dividends = 1.2425
Now we apply the growth for 3 years
Then we apply the dividend growth model
1.4589949084375/(0.09-0.055) = 41.68556881 = 41.69
Answer:
Please see explanation
Explanation:
1. Machine hours used by Krazy Kayak are given as follows
Machine hours=Actual manufacturing overhead costs/cost per hour
=$428,000/41
=10,439 hours
2.Manufacturing overheads are underapplied because the actual overhead cost amounting to $428,000 is greater than applied overheads amounting to $405,900. The factory overheads are under applied by $22,100(428,000-405,900)
3. The journal entry to close out over or under allocated overhead are given as follows:
Debit Credit
Factory overheads applied $405,900.
Profit and loss account $22,100
Factory overheads Control $428,000
Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer:
A) The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
Explanation:
The GDP deflator measures the change in prices of all finished goods and services produced within an economy in a given year.
The CPI, on the other hand, measures the change in the price of a selected basket of goods and services, that corresponds with those that are most often bought by citizens, but is limited anyways in scope.
Therefore, we can safely conclude that the GDP deflator is a more comprehensive measure, even if it's used less frequently than the CPI.
Answer:
Economic effects of imposing a tariff is that it will increase the prices for the goods and consumers will have to pay more for certain good.
Explanation:
Many countries promote trade without tariff so that they can benefit the consumers of their country, but this is only possible if both countries have good relations. Many countries are governed by World trade organizations in order to govern the trade policies. The countries can flourish their trade if they have minimum tariffs and trade policies. Imposition of higher tariff will create burden on consumers of a country.
