Answer:
The market rate of return on the stock is 12.55%
Explanation:
Computing the market rate of return on the stock is as:
Selling price of common stock = Expected price per share / (Rate of return [R] - Dividend)
where
Selling price of common stock is $26.46
Expected price per share is $2.00 per share
Dividend is 5.0%
Putting the values above:
$26.46 = $2.0 / (R - 5%)
$26.46 = $2.0 / (R - 0.05)
R - 0.05 = $2.0 / $26.46
R - 0.05 = 0.0755
R = 0.0755 + 0.05
Rate of return = 0.1255 or 12.55%
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Travel Book
Sales= $164,000
Cost of goods sold= (67,000)
Contribution margin= 97,000
Order and delivery processing (25,000)
Net income= 72,000
Rent and allocated corporate costs remain constant in both decisions (drop or not). Therefore, they are irrelevant.
<u>Now, if the travel book product line was discontinued, the company's net income would have decreased by $72,000</u>
Answer: The final payment would be: $42919,74.
Explanation: To simplify the work we must make a timeline:
0 1 2 3 4 5 6
$6000 $6000 $6000 $6000 $6000 $6000
These would be the normal conditions of the loan.
but if instead of making the 6 payments only one is made at the end:
We must use the FV annuity formula:
6000 ×
= <u>42919,74</u>
Poor distribution of resources, when demand increases and supply cant keep up, and or government intervention.
Answer:
95.22 units
Explanation:
The computation of the number of quantities for ordering the items is shown below:
For this question, we need to find out the economic order quantity which is

where,
Annual demand is 1,700 units per year
Ordering cost per order is $8
Carrying cost per unit is $3
Now placing these values to the above formula
So, the economic order quantity is

= 95.22 units
We simply applied the above formula to find out the number of quantities for order