Answer:
Physics
Explanation:
Opportunity Cost
When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice.
Since Arshad is concerned about his mid-career salary, Physics has the highest mid-career salary among the options, therefore opportunity cost of choosing to major in communications would be Physics
Answer:
12,497 units
Explanation:
Break even unit = Fixed Cost ÷ Contribution per unit
= $400,000 ÷ $97.00 x 33%
= 12,497 units
Sheryls's business need to sell 12,497 units to break even
Answer:
$500
Explanation:
The average cost per seat will be the total cost per plane divided by the seating capacity.
Therefore, the average cost of $50,000 divide by 100 seats
=$50,000/50 seats
=$500
Answer:
See below
Explanation:
Although a great GDP of 4% gives the impression of a strong economy, as is the case here, the inflation rate is much higher than desired. So, economic policies need to be reviewed in order to determine where the problem lies and what steps can be taken to remedy this situation.
Answer:
The value per share of common stock today is $23.94
Explanation:
To calculate the worth of the stock today, we first need to calculate the value of firm using FCF and then calculate the value of equity by deducting the market value of debt and preferred stock from the value of firm. Then we will divide the value of equity by the number of common stock shares.
Value of firm will be calculated using the discounted cash flows model approach. The value of firm will be,
Value of firm = 780000 * (1+0.1) / (1+0.13) + 780000 * (1+0.1) * (1+0.08) / (1+0.13)^2 + 780000 *(1+0.1)*(1+0.08)*(1+0.07) / (1+0.13)^3 +
[ 780000 *(1+0.1) *( 1+0.08) *(1+0.07) *(1+0.06)) / (0.13 - 0.06)] / (1+0.13)^3
Value of firm = $12,577,754.16
Value of equity = $12,577,754.16 - (2000000 + 1000000) = $9,577,754.159
Value per share = $9,577,754.159 / 400000
Value per share = $23.944 rounded off to $23.94