Answer:
$21.859
Explanation:
According to the scenario, computation of the given data are as follow:-
Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period
1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1
= 1.20 ÷ 1.12
= 1.071
2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2
= $1 × (1.44) ÷ 1.254
= $1.148
3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3
= $1 × (1.44) × (1.10) ÷ 1.405
= $1.127
4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4
= $1 × (1.44) × (1.21) ÷ 1.574
= $1.107
5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5
= $1 × (1.44) × (1.331) ÷ 1.762
= $1.088
6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]
= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) × (1.762)
= $2.012 ÷ 0.1233
= $16.318
Now
Share’s Current Value is
= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318
= $21.859
We simply applied the above formula
Answer:
I ,II and IV
Explanation:
Mortgage backed securities are either a claim for equity in a pool of mortgages, or a duty secured by a pool. Such claims reflect home loan securities. Loans borrow from mortgage lenders and then sell bundles of those loans on the resale market.
Specifically, once those loans are paid off, they sell their claim to the mortgage cash inflows. The issuer of the mortgage needs to maintain the loan, receiving principal and interest payments, and transfers those payments on to the mortgage borrower.
Therefore according to the given situation the correct answer is I, II, IV
Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
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Explanation:
Answer:
$7.50 per unit
Explanation:
Cost of buying from outside supplier = $33 per unit.
Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead
= $9.50 per unit + $13.50 per unit + $2.50 per unit
= $25.50 per unit
Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house
= $33.00 per unit - $25.50 per unit
= $7.50 per unit
