The answer is b I’m pretty sure
Answer:
answer is A) $206 B) $61.31
Explanation:
to calculate price of the stock at zero we use dividend discount model formula
P0= D(1+G)/(r-g)
10(1.03)/(0.08-0.03)
$206
b) The dividend is said to be 2% of the free cash flow therefore can be calculated as $10*0.2=$2 per share
then calculate divide growth rates
D1=2*1.3 =2.6
D2=2*(1.3)(1.3)=3.38
D3 = 2*(1.3)(1.3)(1.3)=4.394
Claculate the discount rate using CAPM according to given information
R= 0.2+ 1.5(0.08-0.02)
= 0.11/11%
Use the dividend discount model to calculate the price of the stock
P0= 2.6/1.11+3.38/1.3²+4.394*(1.05)/(0.11-0.05)
2.342+2.743+56.225
=$61.31
Answer:
a need is something you need to live/survive its something you cant live without
Explanation:
Answer:
a. $28 per unit
b. 6,500 units
c. 25,000 units
Explanation:
a. The computation of the contribution margin per unit is shown below:
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $40.50 - $12.50
= $28 per unit
b. The formula to compute the break even point in units is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
= ($182,000) ÷ ($28)
= 6,500 units
c. The formula is shown below:
= (Fixed expenses + target operating income) ÷ (Contribution margin per unit)
= ($182,000 + $518,000) ÷ ($28)
= 25,000 units
