Calculate interest amount forR3000 10%p.a paid out every 6months

Monopolistic competition resembles pure competition because:

OleMash [197]

Answer:

The correct answer is D.

Explanation:

Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

Monopolistic competitive markets:

have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;

have many firms providing the good or service;

firms can freely enter and exits in the long-run;

firms can make decisions independently;

there is some degree of market power, meaning producers have some control over price; and

buyers and sellers have imperfect information.

7 0

3 years ago

Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying cos

disa [49]

Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Explanation:

3 0

3 years ago

Read 2 more answers

Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30%

ra1l [238]

Answer and Explanation:

The computation is shown below:

a) For ROE of the company

As we know that

Debt ratio = 1 - (1 ÷ Equity multiplier)

0.4 = 1 - (1 ÷ Equity multiplier)

(1 ÷ Equity multiplier) = 0.6

Equity multiplier = 1 ÷ 0.6

= 1.6667

Now ROE is

ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier

= 10% × 0.9 × 1.6667

= 15%

b) For the Price of FSL shares

Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio

= $3.50 × 30%

= $1.05

And, Required Return(ke) = 12.4%

Growth Rate(g) = ROE × (1 - Dividend payout ratio)

= 15% × (1 - 0.30)

= 10.5%

And finally the Price of STock:-

= D1 ÷ (ke - g)

= $1.05 ÷ (0.124 - 0.105)

= $55.26

C. For Present Value of Growth Opportunity(PVGO)

As we know that

Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)

= $55.26 - ($3.50 ÷ 12.4%)

= $27.03

7 0

3 years ago

Alejandro has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there a

WITCHER [35]

Answer:

economic and legal

Explanation:

Out of all the options, this option fits the scenario the most and I just took the test.

5 0

3 years ago

Your boss has decided to let you telecommute, meaning that you can move to the Ohio River Valley and live extremely cheaply ...

enyata [817]

Answer:

15%

Explanation:

This is a time value of money question which requires the calculation of the effective annual rate (EAR) on the loan.

First calculate the interest rate of the loan that is compounded monthly using the given parameters as follows :

Pv = $45,975.00

N = 9 × 12 = 108

Pmt = - $752.50

P/yr = 12

Fv = $ 0

i = ?

Interest Compounded Monthly = 14.0579 %

Effective = 15% (using a financial calculator)

6 0

3 years ago