Answer:
Explanation:
Net worth is the difference between a person's (assets - liabilities)
Based on the balance sheet equation; Assets = Liabilities + Equity , meaning that Assets - Liabilities = Equity .
With the above two equations, Net worth = Equity = $56,000
Debt-to- Equity ratio = Debt/ Equity
<em>Note: $80,000 mortgage will not be included as debt to avoid double counting error since it is is a pay towards a home(asset) already incorporated in the $56,000 net worth.</em>
So, D/E = 13,000 / 56,000
D/E = 0.2321
Answer:
$31.82
Explanation:
market price $50
expected rate of return /Re) = 14%
Div = $50 x 14% = $7
risk free rate (Rf) = 6%
market premium (Rm - Rf) = 8.5%
beta = ?
14% = 6% + (beta x 8.5%)
beta x 8.5% = 14% - 6% = 8%
beta = 8% / 8.5 = 0.941
if beta doubles to 1.882, then Re will be:
Re = 6% + (1.882 x 8.5%) = 22%
new market price of the stocks = $7 / 22% = $31.818 = $31.82
Answer:
4.267 times
Explanation:
The computation of market to book ratio is shown below:
Market to book ratio = (Market price per share) ÷ (book value per share)
where,
Book value per share would be
= (Total common equity) ÷ (number of shares)
= ($6 billion) ÷ (800 million shares)
= $7.5 per share
So, the ratio would be
= $32 ÷ $7.5
= 4.267 times
Answer:
Apples and Banana
a) Profit maximizing prices:
i) For Apple = $100
ii) For Banana = $40
b) Profits equal revenue minus costs:
i) For Apple = $100Q - (20 + 10Q) = $60Q
ii) For Banana = $40 - (26.5 + 5Q) = $8.50Q
c) To maximize profit, the price to charge is $100 for Apples and $40 for Banana.
d) I would expect to earn a profit of $68.50 for a set of apple and banana.
Explanation:
To maximize profit, Apple and Banana will be sold separately.
But, selling them together, the best profit maximizing prices will be $100 for Apples and $10 for Banana.
At this combined price, the banana still makes a contribution of $5 per unit towards offsetting the fixed cost of $26.50
Answer:
Rehearsal
Explanation:
The process Randy used to encode the number into longer-term memory is called rehearsal
