Answer:
$10
Explanation:
Interior airline is expected to make a dividend payment of $3
The growth rate of the dividend is 10%
The risk free rate of the return is 4%
The expected return on the market portfolio is 13%
The stock beta of interior airline is 4
The first step is to calculate the cost of equity
r= 4% + 4(13%-4%)
r= 4% + 4(9)
r= 4% + 36
r= 40%
Therefore, the value of the stock using the constant growth DMM can be calculated as follows
Value of the stock= 3/(40/100-10/100)
= 3/(0.4-0.1)
= 3/0.3
= $10
Hence the value of the stock is $10
Answer:
Amount to be paid = $6,000
Explanation:
Trade discount is the reduction in the list price granted to a buyer. A 40% trade discount implies that Blue would have to pay only 60% of the list price.
The amount due for settlement = 10,000 - (40%× 10,000)= $6,000.
The term 2/10 implies that Jones is entitled to a cash a discount of 2% if it settles its invoice within 10 days following the invoice date. The deadline settlement date to receive the discount would therefore be August 6.
Since the account was settled on September 8 which is later than the deadline date set to qualify for the cash settlement discount, Blue would have to pay $6,000.
Amount to be paid = $6,000
Answer: Direct materials quantity variance.
Explanation:
Direct Material quantity variance is the difference between the actual quantity of materials used in production and the standard quantity that was supposed to be used, multiplied by the standard price of the material.
It is a method that checks the company's efficiency is being able to use raw materials to produce goods. If the Actual quantity needed is greater than the Standard quantity, this will be considered an Unfavorable Variance and mean that the company was not efficient in using the materials.
Causes of this can be low quality of materials and inadequate employee training.
Answer:
conservation ethics
Explanation:
Conservation Ethics is a term in business-related operation that defines the appropriate use or average utilization of limited resources while sustaining the quality of general resources for human use such as natural habitats and atmosphere.
Hence, the correct answer is that Conservation Ethics Stresses a balance between resource use and resource availability
Answer:
Ace will repay a total of $52.4 million to bank.
Explanation:
given data
Cost of building new facility = $44 million
Amount borrowed (P) = $40 million
Time period (n) = 4 years
Interest rate (r) = 7% or 0.07
solution
we get here amount to be repaid after 4 years that is express as
amount = P ×
......................1
put here value and we get
amount = $40 million ×
amount = $40 million × 1.31
amount = $52.4 million
so Ace will repay a total of $52.4 million to bank.