Answer: 6.51%
Explanation:
To get the interest rate at which the deal will be fair
Annual payment per year/ cost × 100
Perpetuity = D/r
476000 = 31000/r
r = 31000÷ 476000
r = 0.06512
r = 0.06512 × 100
r = 6.512%
Where D is the dividend
r is the rate
Answer:
Expected value of Total Sales projection is $23,115.
Explanation:
First of all we calculate expected sales projection by multiplying the probability with units, then multiply it to each unit price we will get the expected sales value of each outcome. Adding expected sales value of all outcomes, we will get the total expected sales value.
Outcome Probability Units Sales Volume Price Total Sales
P U V=P x U S TS=V x S
A 0.40 350 140 $21 $2,940
B 0.10 600 60 $30 $1,800
<u> C </u> 0.50 1,050 <u>525</u> $35 <u>$18,375</u>
Total <u>727</u> <u>$23,115</u>
Expected Total Sale projection is 727 units and value is $23,115
Answer:
$5.95
Explanation:
Given that,
Dividend paid in Year 7 = $2 per share
Growth rate of dividend = 2.2%
Required return = 16 percent
Share price is the present value of all future dividends.
Present Value of future dividends at year 6:
= 
= 
= 
= $14.49
Present value of dividends (Now):
= Present Value of future dividends at year 6 × (1 + Required return)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Therefore, the current share price is $5.95 if the required return is 16 percent.
Answer:
The correct answer is letter "C": match the competitors ad campaign but with lower prices.
Explanation:
If it is confirmed that the number of breakfast customers of the fast-food chain restaurant has dropped because of its competitor's implementation of a "good-to-go" breakfast menu, the fast-food chain restaurant should strike back with a similar sale strategy for the breakfast menu but reducing the prices without falling into predatory pricing. The restaurant should also find out a way of improving the current service its competitor is providing to engage the consumers.
Answer:
Justin's company should prepare to demonstrate that it is ISO 14001 compliant.
This means that it is following the environmental management standards for environmental footprint and waste reduction, while promoting environmental sustainability in its operations.
Explanation:
ISO 14001 is one of the environmental management standards, prescribed by the International Organization for Standardization (ISO), "to help reduce environmental impacts, reduce waste, and make the environment more sustainable," according to the ISO website. ISO 14001 specifies requirements for an effective environmental management system (EMS) by providing a follow-able framework.