Answer:
New price (P1) = $72.88
Explanation:
Given:
Risk-free rate of interest (Rf) = 5%
Expected rate of market return (Rm) = 17%
Old price (P0) = $64
Dividend (D) = $2
Beta (β) = 1.0
New price (P1) = ?
Computation of expected rate on return:
Expected rate on return (r) = Rf + β(Rm - Rf)
Expected rate on return (r) = 5% + 1.0(17% - 5%)
Expected rate on return (r) = 5% + 1.0(12%)
Expected rate on return (r) = 5% + 12%
Expected rate on return (r) = 17%
Computation:
Expected rate on return (r) = (D + P1 - P0) / P0
17% = ($2 + P1 - $64) / $64
0.17 = (2 + P1 - $64) / $64
10.88 = P1 - $62
New price (P1) = $72.88
Answer:
$22
Explanation:
The computation of the predetermined manufacturing overhead rate per hour is shown below:
= Total Factory overhead ÷ Estimated labor hours
where,
Total factory overhead is
= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment
= $37,000 + $22,300 + $5,600
= $64,900
And, the machine hours is 2.900
So, the predetermined overhead rate is
= $64,900 ÷ 2,900
= $22
This is the answer but the same is not given in the options
Answer:
a.Preferred Stock for $475,300
and Paid-In Capital in Excess of Par—Preferred Stock for $164,900.
Explanation:
The par value it's a minimum price that the company assigns to the issued shares only to be used in the accounting system but it's not related to market price.
This par value will be shown as a separate value in the section of stockholders' equity, reported under the item Paid-in-Capital, the difference with the market price it's reported as Preferred Stock.
Cash $640.200 Debit
Preferred Stock $475.300 Credit
Paid-In Capital in Excess of Par—Preferred Stock $164.900 Credit
Answer:
1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.
2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.
3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.
4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.
Explanation:
:)
In the case of management, service should be comprehensive and uninterrupted. This reflects the principle of Continuity of care.
Control is the administration of an enterprise, whether it's miles a commercial enterprise, a non-income organization, or a government frame. it is the art and science of dealing with sources of the enterprise.
Getting maximum consequences with minimal Efforts - the main goal of control is to cozy maximum outputs with minimal efforts & sources. management is basically worried about thinking & making use of human, fabric & financial assets in this sort of manner that might bring about a great combination.
Powerful management refers back to the volume to which managers acquire their objectives with the assistance of organizational resources.
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