Answer:
A credit bureau
Explanation:
A credit bureau is a agency which collects the credit history of consumers so that creditors can make decisions about granting loans. So the only logical choice is for Martha's lender to check with them to get her credit history before denying or granting her a mortgage or loan.
Answer:
$3.389
Explanation:
Data provided as per the question below
Fixed cost = $300,000
Variable cost = $200,000
Total cost = $500,000
Units produced = 59,000
The computation of variable cost per unit is shown below:-
Variable cost per unit = Variable cost ÷ Units produced
= $200,000 ÷ 59,000
= $3.389
Therefore we applied the above formula.
Answer:
1. $12.31
2. -11.96%
Explanation:
a) Calculation to determine the intrinsic value of a share of Xyrong stock
First step is to calculate the Required Return
Using this formula
Required Return = Risk-free Rate + [Beta * (Expected Market Return - Risk-free Rate)]
Let plug in the formula
Required Return= 5.5% + [2.7 * (17% - 5.5%)]
Required Return= 5.5% + 31.05% = 36.55%
Second step is to calculate g using this formula
g = ROE * (1 - Payout Ratio)
Let plug in the formula
g= 18% * (1 - 0.25)
g= 13.5%
D0 = EPS0 * Payout Ratio = $10 * 0.25 = $2.50
P0 = [D0 * (1 + g)] / [r - g]
= [$2.50 * (1 + 0.135)] / [0.3655 - 0.135]
= $2.8375 / 0.2305 = $12.31
b). Holding Period Return = [P1 + D1 - P0] / P0
= [$8 + $2.8375 - $12.31] / $12.31 = -$1.4727 / $12.31 = -0.1196, or -11.96%
Answer:
$40,000
Explanation:
For computing the total variable cost, first we have to determine the variable cost per unit which is shown below:
= (Direct materials cost + Indirect materials - variable + Direct labor cost) ÷ (number of units produced and sold)
= ($18,000 + $2,000 + $10,000) ÷ (3,000 units)
= ($30,000) ÷ (3,000 units)
= $10 per unit
Now the total variable cost would be
= $4,000 units × $10 per unit
= $40,000
Answer:
0.66
Explanation:
the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.
The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million
concentration ratio of firm 1 = $10 million / $35 million = 0.29
concentration ratio of firm 2 = $7 million / $35 million = 0.2
concentration ratio of firm 3 = $4 million / $35 million = 0.11
concentration ratio of firm 4 = $2 million / $35 million = 0.06
Adding the ratios together = 0.66
