So if each nominal is 5 and the inflation 1 so if you have 5 inflation you will have 25 nominal
Answer:
$38,100
Explanation:
For avoidable cost, they are example of relevant cost. When a decision is taken , some costs are incurred in connection with such decision, they are known as avoidable cost.
The direct costs associated with a decision to produce are avoidable costs, which entails that such costs will not be incurred should Tangier company decides not to produce.
Therefore, the avoidable cost of Tangier is
= Raw materials cost + Direct labor cost
= $29,500 + $8,600
= $38,100
Answer:
If the required rate of return is 14 percent, the price I am willing to pay is 11.113
Explanation:
To calculate what you are willing to pay today to purchase stock in this company if your required rate of return is 14 percent, you have to use the following formula.
Po = D1 / (k-g)
Po = purchase price
D1 = Dividend in paid in next year
k = required rate of return
g= growth rate
Po = (3.30 (1-0.121)) / (0.14-(-0.121))
Po = 2.9007/ 0.261
Po= 11.113.
