Answer:
$81,000
Explanation:
The computation of the incremental profit (loss) from accepting the order is shown below:
Contribution per unit = $165 - $75
= $90
Now
Loss on contribution for giving up regular sales is
= $4,100 × 90
= $369,000
Now Incremental contribution for special order is
= ($135 - $75) × 7,500
= $450,000
So,
Incremental profit is
= $450,000 - $369,000
= $81,000
Answer:
current share price = $85.96
Explanation:
Find the PV of each dividend
PV= FV / (1+r)^t
r= required return
t= total duration
PV(D1) = 18 / (1.14)= 15.78947
PV(D2) = 14 / (1.14^2) = 10.77255
PV(D3) = 13 / (1.14^3) = 8.774630
PV(D4) = 7.50 / (1.14^4) = 4.44060
PV(D5 onwards) is a two-step process, first PV of growing perpetuity;
PV(D5 onwards) at yr4 =[7.50*(1+0.04) ] / (0.14-0.04) = 78
second, finding PV today ; PV(D5 onwards) at yr 0 = 78 / (1.14^4) = 46.18226
Add the PVs to get the current share price = $85.96
Computer, its a larger amount of money to pay so it would be best there
Answer:
The correct answer is letter "D": represents the universality of exchange rate systems.
Explanation:
Purchasing Power Parity or PPP compares different countries' currencies through a market's basket of goods approach. Two currencies are in PPP when a market basket of goods, taking into account the exchange rate is priced the same in both countries. PPP currency rates are considered more accurate than market-exchange rates.
