A. The market value of the equity if the asset is 7100 is
7100 - 5800 = 1300
b. The market value of the equity if the asset is 5200 is
5200 - 5800 = -600
A negative equity means that the company is in debt.<span />
<u>Scientific notation:</u>
To write an amount in scientific notation the amount is written as multiplication of exponent of 10. In the given case we are asked to write the GDP of Germany 3.65 trillion in Scientific notation. The GDP is given 3.65 trillion and 1 trillion = 1,000,000,000,000. So we can write it as follows:
= 3.65 * 1 trillion
= 3.65 * 1,000,000,000,000
= 3.65 * 10^12
Hence the GDP of Germany in 2008 is <u>3.65 * 10^12</u>
Answer:
The level of sales in units is 7,400
Explanation:
The computation of the level of sales in units is shown below:
= (Fixed cost + target income) ÷ (Contribution margin per unit)
= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)
= $392,200 ÷ $53 per unit
= 7,400 units
The Contribution margin per unit is
= Selling price per unit - variable cost per unit
Henec, the level of sales in units is 7,400
Answer:
$51.86
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 3% + 0.76 × 6%
= 3%+ 4.56%
= 7.56%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
Now the stock price at the end of the year would be
Price of stock = (Today price + dividend ) ÷ (1 + cost of equity)
$51 = (Today price + $3) ÷ (1 + 7.56%)
So, the today price would be
= $51.86
Answer:
B) make the process of dealing with the problem as open as possible.
Explanation:
As the owner of the company, you need to focus on two things:
- solve the problem as fast as you can so the factory starts to operate again.
- engage in public relations activities to reduce the negative effects caused by the factory shutdown. Trying to hide the problem or blaming others for strike wouldn't help your company.
