Answer:
The correct answer is $22.5
Explanation:
According to the scenario, computation of the given data are as follows:
We can calculate the price of stock by using following formula:
Price of stock = (Net Income ÷ No of Shares) × PE Ratio
By putting the value in the formula, we get
Price of stock = ( $1,500,000 ÷ $1,000,000) × 15
= $1.5 × 15
= $22.5
Answer:
The correct answer is C: Both are true
Explanation:
Duration is simply defined as the average lifetime of a debt security stream of payment and the duration of a portfolio is the weighted average of the duration of the individual securities, with the weights reflecting the proportion of the portfolio invested in each.
Answer:
3.06 years
Explanation:
The break-even point is when the total revenue equals the total production costs. In case of the change in manufacturing plan, the break even point is when the additional fixed costs are equal to the savings from the reduced manufacturing costs
Total Manufacturing Costs
<em>Opt 1: Hand Tool Method</em>
Cost = 1.60$/unit*4200unit/year*xyear
Cost = $6720x
<em>Opt 2: Automated System</em>
Cost = 0.65$/unit*4200unit/year*xyear
Cost = $2730x
Additional Fixed Costs
Additional Fixed Cost = $13400 - $1200
Additional Fixed Cost = $12200
Break Even Point
Additional Fixed Cost = Opt 1 Manufacturing Cost - Opt 2 Manufacturing Cost
$12200 = $6720x - $2730x
12200 = 3990x
x = 3.06 years
Assumptions:
- The annual volume is the same every year
- The tools/system costs are a one time costs
- No depreciation of the system has been considered
- The manufacturing cost per unit is the same every year
- There are no other additional costs/expenses
Answer:
A debit card
Explanation:
A debit card allows customers to make electronic payments to third parties directly from their bank checking accounts. Debit cards eradicate the need to carry cash around. Banks and other major financial institutions issue debit cards.
Debit cards and credit cards have identical looks and are used for making electronic payments. The major difference is that credit cards are a type of credit facility, but debit cards make payments by drawing directly from the customer's account. Debit cards do not attract interests like credit cards. In many instances, debit card payments will not go through if the customer's account has insufficient funds.
Officials argue that the government needs to reduce the national debt. The actions that are most likely to accomplish this goal are to i<span>ncrease taxation and decrease spending.
If you raise taxes, you will gain more money. If you cut down on expenses, you will keep that money.</span>
