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2 years ago

To prepare a cvp graph, lines must be drawn representing total revenue, ______.

1 answer:

8 0

The preparation of the CVP graph requires drawing a line representing the total revenue, total expense, and total fixed expense.

<h3>What is the CVP Graph?</h3>

The CVP Graph, also known as a cost volume profit chart, is a graphical illustration that depicts the link between production costs and overall revenues.

The CVP graph is used by businesses to determine the possible impact of changes in volume sales on production process costs and total earnings.

In this scenario, the graph considers the total revenue, total expense, and total fixed expense.

Learn more about the CVP graph here:

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Lois is considering buying a new bicycle for $200. it has a 20hance of breaking down in the next year. what is the expected valu

denis23 [38]

The expected value in terms of repair cost for this purchase is $40.

Repair cost manner fees and expenses are fairly essential or acceptable due to normal wear and tear, periodic replacement, vandalism, damage, or destruction of any part of the ability property, and shall now not encompass operating fees.

First, bring together the entire listing of substances wished, and report a high and occasional price estimate for each. as soon as it really is carried out, add each column of numbers to get the whole cost for each high and coffee. Then upload the two totals, after which divide with the aid of to get the common price.

Repair cost and substitute mean all non-routine, non-repetitive activities, repairs or substitutes of systems, equipment, or device required for continuity of operations, safety, and running overall performance this is vital to prevent or correct a failure of the Pelletier Facility and which aren't protected as a component.

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4 0

2 years ago

Does the good news conveyed by the announcement of a dividend increase mean that a firm can increase its stock price in the long

vivado [14]

Answer:

True

Explanation:

Yes, as there is an increase in dividend with the same expected return, share price increases using dividend growth model.

As for example current dividend = $5

And expected return = 10%

Price of share = 5/10% = $50

In case dividend is increased to $10 then share market price = $10/10% = $100

Now, with an increase in dividend rate, there is an increase in market price accordingly company can raise dividend in order to raise the share price accordingly.

Further, this might not be possible when dividend is fixed for the period as dividend is fixed with no further growth rate the price will also be fixed. So every time when the price is to be increased, the dividend has to be increased.

Therefore, above statement is true.

5 0

3 years ago

You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in year 1, $4.25 in year 2

Yuri [45]

Answer:

I would pay up to 81.52 dollars for the share that way I will get a 12% return at least

Explanation:

We need to calcualte the present value of the cash flow of each year using the formula for present value of a lump sum:

Dividends Present Value

1st year 3.00 2.678571429 *1

2nd year 4.25 3.38807398 *2

3rd year 106.00* 75.44870627 *3

<em>Value of the share at 12% discount rate 81.51535168</em>

*100 dollars from the sale plus 6 dollars of dividends

$\frac{Dividend}{(1 + rate)^{time} } = PV$

Div: 3.00

time: 1

rate: 0.12

$\frac{3}{(1 + 0.12)^{1} } = PV$

PV 2.678571429

Dividends 4.25

time 2.00

rate 0.12000

$\frac{4.25}{(1 + 0.12)^{2} } = PV$

PV 3.3881

Maturity 106.00

time 3.00

rate 0.12000

$\frac{106}{(1 + 0.12)^{3} } = PV$

PV 75.4487

7 0

3 years ago

Last summer, Maria decided to join a bowling league with some colleagues from work. They formed a team and bowled together sever

scZoUnD [109]

#1 is storming
#2 is a. And d.

5 0

3 years ago

. Gibson Company sales for the year 2019 were $4.5 million. The firm’s variable operating cost ratio was 0.45 and fixed costs (t

MariettaO [177]

Answer:

See solutions below

Explanation:

1. The degree of combined leverage

= (Sales - Variable costs) / EBIT - Interest

Sales = $4.5 million

Variable costs = 0.45 × $4.5 million

= $2,025,000

EBIT = $4,500,000 - $2,025,000 - $1,000,000

= $1,475,000

Interest = 12% × $2,400,000

= $288,000

Therefore,

DCL = [$4,500,000 - $2,025,000] / $1,475,000 - $288,000

= $2,475,000 / $1,187,000

= 2.09

2. Gibson expected degree of leverage

Sales = 15% × $4.5 million

= $5,175,000

Fixed cost = $200,000 + $1,000,000

= $1,200,000

Variable cost = $0.42 × $2,025,000 - $2,025,000

= $2,025,000 - $850,500

= $1,174,500

EBIT = $5,175,000 - $1,174,500 - $1,200,000

= $2,800,500

Interest = $2,400,000 + $900,000

= 12% × $3,300,000

= $396,000

DCL = $5,175,000 - $1,174,500 / $2,800,500 - $396,000

= $4,000,500 / $2,404,500

= 1.66

8 0

4 years ago