Answer:$100
Explanation:
Accounting profit is total earnings less total cost.
Accounting profit = Total revenue - Total cost
$150 - $50 = $100
Economic profit = Accounting profit - Opportunity cost
$100 - ($20 ×5) = 0
Answer:
The correct answer is $57.
Explanation:
According to the scenario, the computation of the given data are as follows:
Dividend = $11.40
Growth rate = -0.05
Required rate of return = 0.14
So, we can calculate the price by using following formula:
Price = Dividend × ( 1 + Growth rate) ÷ ( return rate - growth rate)
By putting the value, we get
= $11.4 × ( 1 - 0.05) ÷ ( 0.14 + 0.05)
= $57
Answer:
The company's earnings per share is $ 4.
Explanation:
EPS earning per share is an indicator widely used by investor of stock market in order to determine market value of their investment. EPS is directlty proportional to stock price.
EPS is calculated by dividing net income with outstanding common shares.
EPS = Net income/ outstanding common shares
EPS = 34,000/8,500 = $ 4
Answer:
Aquaguard may choose any of the two models to minimize the production variability in the new plant.
Explanation:
Model 1: Mean = 1000, Standard Deviation(SD) = 300
Model 2: Mean = 1000, SD = 300
Model 3: Mean = 1000, SD = 300
Coefficient of variation for model 1
C.V = ( SD ÷ Mean) × 100
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 2
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 3
= ( 300 ÷ 1000 ) × 100
= 30 %
We conclude that all the models have same effect .
