Answer:
$60.45
Explanation:
Recall that
Po = D1/r - g
Where
Po = current price of stock
D1 = net dividend expected
r = required return
g = constant growth rate
From the question, we are going to pay at super normal growth rate for 3 years followed by constant dividend policy. The value after three years can be calculated by using constant dividend growth formula and after that, present value will be calculated. Thus, current value of stock will be
= D1/(1 + r) + D2(1 + r)^2 + D3/(1 + r)^3 + D4/(r - g)(1 + r)^3
= 2.5 × 1.25/(1 + 13) + 2.5 × 1.25^2/(1 + 13)^2 + 2.5 × 1.25^3(1 + 13)^3 + 2.5 × 1.25 × 1.06/(13 - 6)(1 + 13)^3
= 2.77 + 3.06 + 3.38 + 51.24 = 60.45
Therefore, present value of stock is $60.45
Answer:
The answer is " =SUMPRODUCT(Rents, Leases in cell B1, and pressed Enter)".
Explanation:
The function "SUMPRODUCT" returns the total of products with their respective ranges or arrays. Its main operation is multiplying, although it is necessary to add, subtract, and divide.
To calculate the "SUMPRODUCT", we just click on the cell B1 and type the "SUMPRO" by typing the in cell B1, and double-clicked and apply the above formula that is "=SUMPRODUCT(Rents, Leases in cell B1, and pressed Enter)".
Solution:
Activity Units Units cost Cost of Goods Available
Beginning Inventory 11 $65.00 $715
1st week purchase 11 $66.00 $726
2nd week purchase 11 $67.00 $737
3rd week purchase 11 $70.00 $770
4th week purchase 11 $75.00 $825
Units available for sale 55
Cost of goods available for sale $3,773
Answer:
50 customers per day
Explanation:
For computing the capacity required customers per day, first, we have to compute the current demand per day which is shown below:
Current demand = Average number of pets per day × estimated percentage
= 74 pets × 60%
= 44.4 per day
Now the capacity required per day would be
= (Current demand per day) ÷ (1 - capacity cushion percentage)
= 44.2 ÷ (1 - 0.12)
= 50.22 per day
