Answer:
a) 14.43% , The amount is reasonable
b) Pay as you go
c) Yashari should should prioritize paying the Loan instalment before saving for the emergency fund
d) Standard repayment plan
Explanation:
Yashari Monthly take-home pay = $1850
<u>a) Determine the % of her paycheck goes toward student loans if she chooses standard repayment</u>
Rate of interest = 4.30%
hence % of her paycheck that goes toward student loan = 14.43%
The repayment amount = $32035. which is very reasonable as well
b) what plan that has the longest repayment period
PAYE ( pay as you earn ) has the longest repayment period
<u>c) prioritizing between her emergency fund goal and student loan </u>
Yashari should should prioritize paying the Loan instalment before saving for the emergency fund because of the penalties that comes with loan defaulting
d) Yashari should select the Standard repayment plan because the final amount paid using this plan is lower
Answer:
CCC's new required rate of return is 16.5%
Explanation:
in the first we need to determine the risk free rate using the Capital Asset Pricing Model formula of Miller and Modgiliani as shown below
required return=Rf+beta*(average market return-Rf)
Rf is the risk free rate that is unknown
Beta is 1.5
average market return is 10%
required rate of return is 12%
Rf?
12%=Rf+1.5*(10%-Rf)
12%=Rf+15%-1.5Rf
1.5Rf-Rf=15%-12%
0.5Rf=3%
Rf=3%/0.5
Rf=6%
Average rate of 10% has now increased by 30% i.e 10%*(1+30%)=13%
Required rate of return=6%+1.5*(13%-6%)
=6%+1.5*7%
=6%+10.5%=16.5%
So first you know that if a is apple pies and b is blueberry that
$460=11a+13b in terms of price and you also know that the number
a+b=38
I solved that for either a or b (I chose a)
So
A=38-b
Them I plugged it in to the money equation to solve for b
460=11(38-b)+13b
460=418-11b+13b
460=418+2b
42=2b
B=21
Therefore you can do 38(total pies)-21(what b equals) to find the apple pies which would be 17 so a=17
Therefore the answer is B (17 apple and 21 blueberry)
Answer:
The most you should pay for this stock is 126.89
Explanation:
The dividend in years 1 – 3 will grow at 12% and then at 5% forever.
We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).
We used our calculators to find the PV of each year at the 8% discount rate. Finally we will add them all together to get the final answer.
We find the future dividends using g =12%
Dividend in year 0 --->
Dividend in year 1 ---> 3.36
Dividend in year 2 ---> 3.76
Dividend in year 3 ---> 4.21
Dividend in year 4 ---> 4.43
Now we will calculate the present value of the future dividends using r = 8%
Stock Value assuming constant growth rate = 147.52 --(a)
PV in year 1 ---> 3.11
PV in year 2 ---> 3.23
PV in year 3 ---> 120.45 --(discounting (a))
= 120.45 + 3.23 + 3.11
= 126.89
Answer:
B. $270,000.
Explanation:
The computation of the total overhead cost is shown below:
But before that first we have to find out the variable overhead per hour which is
= $90,000 ÷ 15,000
= $6 per hour
Now
Variable overhead for 25,000 hours is
= $6 per hour × 25,000
= $150,000
So,
Total overhead cost is
= Variable overhead for 25,000 hours + Fixed overhead cost
= $150,000 + $120,000
= $270,000
hence, the correct option is B. $270,000
