Well...if he earns $75 an hour....and he worked for 20 hours...that's
75 * 20 which = 1500
Now it says he also earns a flat fee....since the question states he billed the client 1800...and he only earned 1500 of it...that must mean that his flat fee would be
1800 - 1500 = 300
So his flat fee is 300...and his variable charge...is 75x (75 dollars per hour)
in an equation...this would look like
C(x) = 75x + 300
Answer:
$43.75
Explanation:
Dividend discount model with zero growth assumes that the Company shall continue to pay the same amount of dividend in infinity. The formula for calculating price of such stock is
Price = Annual Dividend / Discount rate
Price = $3.5 / 8%
Price = $43.75 / per share
The concept of subsidy is very well-explained in this item. From the context, subsidy is the amount that is payed by the government to the buyer every time a purchase is made. Since, the concept of subsidy is very favorable to consumers then, the demand for a certain product would definitely go high.
Answer:
Dividend in year 2000 (Do) = $0.137
Dividend in year 2012 (D12) = $0.55
Required return (Ke) = 13.7% = 0.137
D12 = Do(1 + g)n
$0.55 = $0.137(1 + g)12
<u>$0.55</u> = (1 + g)12
$0.137
4.0146 = (1 + g)12
12√4.0146 - 1 = g
1.1228 - 1 = g
g = 0.1228 = 12.28%
Po = Do<u>(1 + g)
</u>
ke - g
Po = $0.55<u>(1 + 0.1228)
</u>
0.137 - 0.1228
Po = $0.55<u>(1.1228)
</u>
0.0142
Po = $43.49
Explanation:
In this case, we need to calculate the growth rate using the formula D12 = Do(1 + g)12. Then, we will calculate the current market price, which is a function of current dividend paid, subject to growth rate, divided by the excess of cost of equity over growth rate.
Answer:
The NPV of this project is <u>$494,385.54</u>.
Explanation:
Note: See the attached excel file for the calculation of the NPV.
Net present value (NPV) of project refers to the the difference between the project's present value of its cash cash inflows and the present value of of its cash outflows over a specific period of time.
Since inflow is positive and outflow is negative, NPV can also be calculated by just sum of both the inflows and outflows.
The NPV of this project <u>$494,385.54</u>.