Answer:
12.46%
Explanation:
Data provided
Dividend income = $1.1
Ending share per price = $63
Initial price = $57
The computation of the percentage total return is shown below:-
Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price
= ($1.1 + ($63 - $57)) ÷ 57
= ($1.1 + $6) ÷ 57
= $7.1 ÷ 57
= 0.12456
or 12.46%
Answer:
D. $ 367.500
Explanation:
We have to first compute the total direct labor cost. This is done by multiplying the estimated direct labor hours with the hourly rate.
Total Direct Labour costs $ 17.50 per hour * 15,000 hours = $ 262,500
Estimated manufacturing overhead per the data in the question is 140 % of Direct labor cost,
Estimated manufacturing overhead is $ 262,500 * 140 % = $ 367,500
Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
Answer:
Most consumers decide on a product using price as the number one factor
Explanation:
Sale prices could make a market more competitive and it is also a pricing strategy.
If an entrepreneur set the price as high as s/he thinks s/he can it could take her/him out of competition in the market and it would leave her/him without profit.
Small business don't set their prices according to their business size but to the economic factor, because consumers first decide based on the economic factor because people can't buy what they can't afford.
Answer:
d. Rise in price of alcohol
Explanation:
Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.
Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'
Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .
