Answer:
$41.96
Explanation:
The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).
Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)
= 4.25 x (1 + 3%)/(12.5% - 3%)
= 46.08
Then value of the stock is calculated as below:
Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3
= 41.96
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
Answer:
The science of microeconomics covers a variety of specialized areas of study including: Industrial Organization: the entry and exit of firms, innovation, and the role of trademarks. Labor Economics: wages, employment, and labor market dynamics.
Explanation:
Yes, It would be advantageous for wynn manufacturing corporation if the cranston division makes the investment under consideration.
- Since managers are charged with maximizing the potential of their own units, it is crucial to frequently assess their performance in the workplace.
- Target measurements can be used to assess managers of investment centers' performance.
- Businesses typically have a target or targeted rate of return they would like to reach in order to assess a project's viability.
- It is profitable for the firm as a whole to move forward with the project in this case because the project's projected return of 18% is higher than the company's desired rate of return of 16%.
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Answer:
3) Create a lead assignment rule
Explanation:
Salesforce uses lead assignment rules to define which sales rep is responsible for generating and supporting a sales lead (potential sale). Each organization is responsible for setting up the specific criteria used to assign sales leads. By using assignment rules this process can be automated.
For example, your lead assignment rule may be based on territory or sales status.
