Answer:
$3.18 (rounded to nearest cent)
Explanation:
FIrst we shall find out the price at the end of year 2:
P1 = D2 ÷ (k-g)
Where,
P1 = price a the end of first year
D2 is the dividend in second year = $0.25
k is the cost of equity = 9.2% =0.092.
g is the growth rate = 2% = 0.02
now,
P1 = $0.25 ÷ (0.092 - 0.02)
=$0.25 ÷ 0.072
=$3.4722222222 (this is estimated price after two years).
Value of share today:
= Price of share after one year × (discounting factor @9.2% for one year).
Discounting factor @9.2% for two years = 1 ÷ (1.092)
=0.91575091575
The value of share today:
= ($3.4722222222) × (0.91575091575.)
= $3.17969068
= $3.18 (rounded to nearest cent).
Answer: C. Offer product bundling
Explanation:
Product bundling is a marketing strategy whereby several products are grouped together as one and these products will then be sold for a price.
The main aim of the strategy is to encourage customers to purchase more products. Based on the question, the merger will help the company offer product bundling.
not sure but I think the answer is b.
Have a good day uwu
Answer: 10.79%
Explanation:
Based on the information given, the return in year 1 will be:
= (22.5 + 2)/21 - 1
= 1.1136 - 1
= 0.1136
= 11.36%
The return in year 2 will be:
= (22.8 + 2)/22.5 - 1
= 1.1022 - 1
= 0.1022
= 10.22%
Therefore weighted return will be:
= (11.36% + 10.22%)/2
= 21.58%/2
= 10.79%
Answer:
1. Overhead rate = Overhead costs / Direct material costs
Overhead rate = $684,000 / $1,900,000
Overhead rate = 0.36
Overhead rate = 36%
2. How much direct labor cost and overhead cost are assigned to this job?
Total cost of job in process $71,000
Less: Overhead applied $7,920
($22,000 * 36%)
Less: Material cost of job in process <u>$22,000</u>
Direct labor cost <u>$41,080</u>
Hence, direct labor cost is $41,080 and Overhead cost is $7,920