Answer:
Purchases= 17,200 pounds
Explanation:
Giving the following information:
Production in units:
Month 1= 16,000 units
Month 2= 22,000 units
One pound of materials is required for each finished unit.
The inventory of materials at the end of each month should equal 20% of the following month's production needs.
Beginning inventory= 3,200 lbs.
To calculate the direct material required, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 16,000 + 22,000*0.2 - 3,200
Purchases= 17,200 pounds
Hello,
Not sure if this is a school related question but i have the answer for ya (:
There are multiple reasons on why you shouldn't let another person use your business name.
1. They can make YOUR profit off of what you sell
2. It can lead to a law suit in the future
3. 2 businesses using the same name always leads to unwanted problems, finance cases, business claims, and the possibility of being sued by the other person.
Best option would be for you to make your own business name and get it trademarked so that nobody will copy you! (:
<span>b. companies always carefully test any claims that they make about a product </span>
Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
