No, it is not reasonable or logical for
a firm to grow indefinitely at a rate higher than its required return. Such a theoretical
stock would become so large that it would ultimately go beyond the whole
economy. However for a very short period of time, the rate could possibly be
higher than the required return especially when the firm is performing
excellently.
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These are called in kind benefits or benefits in kind. They are benefits which are given to employees or directors from their company. However, these are not included in their salary wages. They are also called perks or fringe benefits and they include things like company cars, medical insurance, and cheap loans.<span> </span>
What are the typical fees banks charge?
Answer:
Pretax income= $122,500
Explanation:
Giving the following information:
Fixed costs= $72,500
Variable costs equal to 40% of sales.
Sales= $325,000
<u>To calculate the pretax income, we need to use the following formula:</u>
Pretax income= contribution margin - fixed costs
Pretax income= 325,000*(1-0.4) - 72,500
Pretax income= $122,500
