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3 years ago

Carla Vista Company has the following information available for September 2020.

Business

1 answer:

dmitriy555 [2]3 years ago

7 0

Answer:

Carla Vista Company has the following information available for September 2020.

Unit selling price of video game consoles $410

Unit variable costs $328

Total fixed costs $36,900

Units sold 600

Compute the unit contribution margin.

Unit contribution margin enter the unit contribution margin

Prepare a CVP income statement that shows both total and per unit amounts.

Compute Carla Vistaâ€™ break-even point in units.

Break-even point in units enter Break-even point in units units

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra

Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

$Ke= 0.085 + 1.3 (0.045)$

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

$\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value$

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{3.444}{(1 + 0.1435)^{1} } = PV$

3.011805859

$\frac{4.23612}{(1 + 0.1435)^{2} } = PV$

3.239633762

$\frac{61.6686857}{(1 + 0.1435)^{2}} = PV$

47.16201531

We add them and get the value of the stock:

53.413455

5 0

3 years ago

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will ca

amid [387]

Answer: Option (a) is correct.

Explanation:

The complimentary goods are the goods which are used together to satisfy a given want. There is an inverse relationship between the price and demand of complimentary goods.

Suppose there are two complimentary goods such as computers and printers. So, an increase in the price of computers will lead to reduce the demand for printers because both are used together. Hence, there is a fall in the quantity supplied of printers. Alternatively, a decrease in the price of computers will lead to increase the demand for printers because both are used together.

5 0

3 years ago

ABC Corporation, after many profitable years, declares a one-time special cash dividend of $10.00 per share. After the announcem

Crank

Answer:

1 ABC Jan 100 Call

Explanation:

Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.

For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.

The new strike price will be

= 110 - 10 cash dividend

= 100. It also means that the number of shares covered by the contract does not change.

4 0

3 years ago

Which one of the following is a capital structure decision?

nirvana33 [79]

Answer:

Explanation:

Capital Structure decision is determining the optimal way of raising capital either through Equity or Debt.

8 0

3 years ago

Someone who is a natural leader exhibits this Learning Pattern

konstantin123 [22]

Someone who is a natural leader exhibits this pearning pattern : Strong willed
learner.

-Hope this helps.

7 0

2 years ago