Answer:
= $76.32
Explanation:
Calculate the Dividend amount per year;
D1 = 9.25+ 7.25 = 16.5
D2 = 15.5+ 7.25 = 23.75
D3 =23.75 + 7.25 = 31
D4 = 31 + 7.25 = 38.25
Next, use the dividend amounts per year and the required return of 14% to find the price per share;
PV (of D1) = 16.5 / (1.14) = 14.4737
PV (of D2)= 23.75/ (1.14²) = 18.2749
PV (of D3) = 31 / (1.14³) = 20.9241
PV (of D4) =
Sum up the PVs;
= 14.4737 + 18.2749 + 20.9241 + 22.6471
Price = $76.32
Answer: Option (C)
Explanation:
Excess supply is referred to as or known as the market condition under which the quantity supplied tends to greater than demand for a product, commodity or a service at the current market price. It mostly tends to occur at the price which is greater than equilibrium price level. The price tends to be greater than that of equilibrium price therefore sellers would moreover sense this situation as an opportunity in order to earn the greater profits and thus would pump in supply.
Answer and Explanation:
1.Increasing opportunity costs
2.Increasing marginal costs
Answer:
C) 20.48%
Explanation:
I will use an example to show this:
1€ = $1
if the euro depreciates by 17%, then the exchange rate will be 0.83€ = $1
in order for the euro to recover its previous value against the dollar, it needs to increase 0.17€ / 0.83€ = 0.2048 = 20.48%
in other words, a 17% depreciation is equivalent to a 20.48% revaluation.
Complete question:
Simon Inc. currently produces 110,000 units at a cost of $440,000. The cost is variable. Next year Simon Inc. expects to produce 115,000 units. Simon's relevant range for production is 100,000 to 120,000 units. If 115,000 units are produced next year, what is the expected variable cost?
A) $420,000
B) $430,000
C) $440,000
D) $460,000
Explanation:
Given ,
Simon Inc. currently produces 110,000 units at a cost of $440,000
Next year Simon Inc. expects to produce 115,000 units
Range for production is 100,000 to 120,000 units.
Now , we need to find out
If 115,000 units are produced next year, then the expected variable cost equation is ,
Variable cost per unit =
= $460,000