Answer: $28.30
Explanation:
Given the following :
Expected Dividend = $1.70
Earning from share sale at year end = $30
Expected rate of return on investment = 12%
Maximum price of stock :
(Earning from share + expected Dividend) / (1 + return rate)
(30 + 1.70) / ( 1 + 12%)
(30 + 1.70) / (1 + 0.12)
(31.70) / (1.12)
= $28.303571
= $28.30
Answer:
The quanitity per order that minimizes the cost is 137.84 units.
Explanation:
The EOQ or economic order quantity is the quantity that should be ordered per order to minimize the cost of ordering and holding inventory. To calculate the number of units that should be ordered per order to minimize cost, we need to calculate the EOQ.
EOQ = √(2*D*O)/H
Where,
D is the annual demand in units
O is the ordering cost per order
H is the holding/carrying cost per unit per annum
Thus,
EOQ = √(2 * 250 * 19)/0.5
EOQ = 137.84
Answer:
Present value of lottery= $333,333.333
Explanation:
Given Data:
Initial Payment=$10,000
Rate at which payment grow=2%=0.02
Discount Rate=5%=0.05
Required:
Present value of lottery=?
Solution:
where:
r is the discount rate
g is the growth rate
Present value of lottery= $333,333.333
A SAVINGS ACCOUNT is an example of an investment
