Answer:
$2,950
Explanation:
assuming that year 2000 is the base year:
real GDP for 2003 = (bikini price 2000 x bikini quantity 2003) + (speedos price 2000 x speedos quantity 2003) = ($75 x 30) + ($50 x 14) = $2,950
base year's prices become the real prices of the economy, and any change in real GDP is given by changes in output
Answer:
B
Explanation:
construct the extended dupont equation for both lozano and the industry.
Answer:
Explanation:
41,900
June 01 Balance b/d 16,300
Answer:
the target selling price is $76.70
Explanation:
The computation of the target selling price is shown below:
= Total cost + 1 × markup percentage
= ($17 + $6 + $3 + $19 + $1 + $13) × (1.30)
= $76.70
hence, the target selling price is $76.70
We simply applied the above formula so that the target selling price could be determined
We can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time. But we need to do a small adjustment for floatation cost. Following formula can be applied:
Cost of preferred stock = Annual Dividend / (Price x (1- flotation cost %))
= 8.50 / ( 97.50 x (1- 0.04))
= 8.50/93.60
= 9.08%
