The model that best fits the given situation is exponential
<h3>
what is an Exponential Function?</h3>
Exponential function, in mathematics a relationship of the form y = 
, where the independent variable x extends over the entire real number line as an exponent of a positive number a. The most important exponential function is y = 
.
Here,
The value of a classic car = $50,000
It is increasing in value by 5% per year.
So, here we have a = 50,000 and x = 5%
The function is increasing.
b = 1+5%
b = 1+0.05 = 1.05
Hence, the function that describes this situation is given by:
To learn more about Exponential Function from the given link
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Answer:
Contribution margin per unit = Sales price per unit – Variable cost per unit
$2 - $1.20=$0.80
The contribution margin per package is $ 0.80.
Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit $85,000 + $22,000/0.80 = 133,750 packages
Contribution margin per package = $2 - $1.00 = $1.00
Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit
$100,000 + $22,000/$1= 122,000 packages
The firm will have to sell 122,000 packages to generate $22,000 of operating income. Socks unlimited would have to sell 11,750 less packages of socks to earn $22,000 of operating income. The increase in fixed costs was completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, the firm will need to sell less units in order to achieve its target profit level.
Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) = 
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
Answer:
Diverisify
Explanation:
The best option would be to diverisify between various things. Part into a promising crypto such as Ethereum or Bitcoin. Part into some basic index funds such as the SPY (S&P500), some bigger tech companies such as Apple and finally a more risky investment into a stock or crypto which is only in the beginning of its age. If you would like protection against a crisis or similar you could buy some Put options for your stocks.
Answer:please refer to the explanation section
Explanation:
Mechanic = $100
Vet = $100
Alex (payment from vet) = $100
Will's $100 bill has created $300.
This situation is explained in detail by the concept known has the multiplier. The multiplier measures how much impact will a change in an exogenous variable will cause in endogenous variables, for example How much a increase in Government spending will change Gross Domestic Product.
The multiplier in this case is 3,
