Answer:
a scale of preference has to be drawn.
Explanation:
This is an economic concept where a choice is made between two or more items based on the order of importance.
Answer: $65,075.85
Explanation:
Given that the cash flow should be constant, it will be an annuity.
The initial investment will be the present value of this annuity.
Present value of annuity = Annuity * ( 1 - (1 + rate)^-number of periods) / rate
460,100 = Annuity * ( 1 - (1 + 8.2%) ⁻¹¹) / 8.2%
460,100 = Annuity * 7.070211525
Annuity = 460,100 / 7.070211525
= $65,075.85
Answer:
The regional aircraft will presumably have a higher break-even point the original investment point than a furniture maker in light of the fact that the majority of a carrier's expenses are fixed . It is imperative to take note of that despite the fact that the two organizations report indistinguishable income and total compensation figures, their equal the initial investment focuses will probably contrast fundamentally due to contrasts in their cost structures.
Answer:
Option (D) is correct.
Explanation:
Cost of common stock:
= (Expected dividend at the end of Year 1 ÷ Price of stock) + Growth rate.
= (1.45 ÷ 22.50) + 0.065
= 0.0644 + 0.065
= 0.1294 i.e., 12.94%
Conclusion:-
Cost of common stock = 12.94%
Note:-
D1 = Expected dividend at the end of Year 1,
P0 = Current price of common stock, and
gL = Growth level i.e., growth rate in dividend.
