Answer:
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Explanation:
For calculation, following things need to be considered which is shown below:
1. Product A process costing = Pounds × Per pound price
= 34,000 × $8
= $272,000
2. Product A costing after selling = Pounds × sale price per pound
= 34,000 × $14
= $476,000
3. Difference of costing :
= Product A costing after selling - Product A process costing
= $476,000 - $272,000
= $204,000
4. Invested amount = $227,800
5. Actual Difference = Invested amount - costing difference
= $227,800 - $204,000
= $23,800
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Answer:
$26,600
Explanation:
the total amount of interest expense included in the first annual principal (or any annual payment actually) = principal's balance x yearly interest rate
$280,000 x 9.5% = $26,600
the principal's balance after the first payment = $280,000 - $26,600 = $253,400
the interest expense included in the second payment = $253,400 x 9.5% = $24,073
Answer:
The correct answer is option c.
Explanation:
The only kind of market structure where the price is set by market forces and not the firms is pure competition. The firms in other market structures such as oligopoly, monopoly and monopolistic competition are price setters.
The market for wheat is a pure competition as there is a large number of sellers who are producing identical products. The firms are price takers and the price is determined by market forces.
Answer:
$23.25
Explanation:
the maximum that you would be willing to pay for a stock of Universal today can be determined using the multistage dividend discount model
The first step is to find the present value of the dividends over the next four years :
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $8
Cash flow in year 2 = $4
Cash flow in year 3 = $2
Cash flow in year 4 = $2
I = 15%
Present value = $12.44
Next we would find the present value of the perpetual growth of dividend
($2 x 1.04 ) / 0.15 - 0.04 = 18.91
the present value of this amount = $18.91 / = $10.81
Maximum value = $12.44 + $10.81 = $23.25
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
25,741.17
because you multiply 0.098x5,837x45! hope this helps!