Answer:
A) increase by $1,200 is the correct option
Explanation:
Incremental savings [500 *26] =13000
Rental income=2,200
Total income=15200
Less:Incremental cost =[500*28] =- 14000
Incremental income 1200
Answer:
30.92%
Explanation:
Use CAPM (Capital Asset Pricing Model) to find the cost of equity;
cost of equity ;r = risk free rate + Beta (Market Risk Premium)
risk free rate = 4.90% or 0.049 as a decimal
Beta = 2.8
Market Risk Premium = 8.56% or 0.0856 as a decimal
Next, plug in the numbers to the above CAPM formula;
r = 0.049 + 2.8(0.0856)
r = 0.049 + 0.23968
r = 0.2887 or 28.87%
Therefore, cost of equity using CAPM is 28.87%
Next. find cost of equity using Dividend growth model ;
r = (D1/P0) +g
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r = 0.3298 or 32.98%
Cost of equity using Dividend growth model is 32.98%
Find the average of the two to find the cost of equity of this stock;
= (28.87% + 32.98%) /2
= 61.85%/2
= 30.92%
Monique is a(n) Importer.
What is an Import?
Any good or commodity brought into one country from another. Customs authorities must be involved in both the import and export countries.
Import trade means goods and services purchased in one country from another. Because products are frequently transported by ship to foreign countries, the term "import" derives from the word "port." Imports, like exports, are the backbone of international trade.
In this case, if the cost of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit.
Objectives of Import Trade:
- To speed up industrialisation
- To meet domestic demand
- To overcome natural disasters
- To improve standard of living
- To ensure national defense
Know more about trade here:
brainly.com/question/17717899
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Answer:
$80,800
Explanation:
Calculation to determine the annual cash inflow have to be to make the investment in the equipment financially attractive
Using this formula
Annual cash flows = Negative net present value to be offset ÷ Present value factor
Let plug in the formula
Annual cash flows = $401,414 ÷ 4.968
Annual cash flows = $80,800
Therefore the annual cash inflow have to be to make the investment in the equipment financially attractive is $80,800
