Answer:
Operation Twist is a program which is used by the FED to use the proceeds from the sale of short-term bonds to buy the long-term bonds. This is intended to put the downward pressure on the long-term yield. By buying the long-term bonds from the proceeds from short-term bills increases the demand for the bonds. Increased demand increases the price of them which makes the yield to decline as the difference between face value and the coupon or the purchase value decline.
Quantitative easing, on the other hand, is purchasing the bonds by the government which pushes up the prices of the bonds in the economy and so decreases the interest rates, a move made to make the monetary conditions easier. (C)
Overhead rate per direct labor cost: 180%
Overhead rate per direct labor hour: 18
Overhead rate per machine hour: 9
Procedure:
Overhead rate per direct labor cost
= 894600 ÷ 497000
= 1.8
= 1.8 × 100
= 180%
Overhead rate per direct labor hour
= 894600 ÷ 49700
= 18
Overhead rate per machine hour
= 894600 ÷ 99400
= 9
Divide each operating activity cost by manufacturing overhead cost
What is overhead rate?
The overhead rate is a cost that is incurred during the manufacturing of a product or service. Overhead costs are expenses that are not directly related to production, such as corporate office costs. An overhead rate is applied to the direct costs associated with production to allocate overhead costs by spreading or allocating overhead costs based on specific measures.
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Answer:the satisfaction a person gets from consumption
Explanation:
Answer:
The correct option is (b), 13.88%
Explanation:
Given:
D0 = $3.12
Expected growth in dividend (D1) next year = 16% or 0.16
Dividend paid next year = 3.12 × (1+0.16)
= $3.6192
Now calculate horizon value. For that cost of equity needs to be computed which can be calculated using CAPM:
Cost of equity (Re) = Rf + β(Rm)
= 0.05 + 1.9(0.06)
= 0.164 or 16.4%
Horizon value =
Growth rate is 0.032 from second year onward
Horizon value =
= $28.3
Now we have to calculate intrinsic value of stock:
Intrinsic value =
=
= $27.42
Expected Dividend = D1÷Intrinsic value
= 3.6192 ÷ 27.42
= 13.2
Expected dividend yield is 13.2 approximately which is close to 13.88 (difference due to rounding off of intermediary calculations)