Answer:
A. D1 = 1.50*1.06 = 1.59
D2 = 1.59*1.06 = 1.69
D3 = 1.69*1.06 = 1.79
B. PV of D1=(1.50*1.06)/1.13^1=1.41
PV of D2=(1.50*1.06^2)/1.13^2=1.32
PV of D3=(1.50*1.06^3)/1.13^3=1.24
PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3
PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897
PV of all dividend = 1.407079646 + 1.319915 + 1.238150748
PV of all dividend = 3.965145814288893
PV of all dividend = 3.97
C. PV = 27.05/(1+13%)^3
PV = 27.05/(1.13)^3
PV = 27.05/1.442897
PV = 18.74701
PV = 18.75
D. The most you should pay for it
:
= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3
=22.71
E. Value = (1.50*1.06)/(13%-6%)
Value = 1.59 / 7%
Value = 1.59 / 0.07
Value = 22.714286
Value =22.71
F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.
Answer:
c the price elasticity of demand is about 1.43 and an increase in the airfare will cause airlines' total revenue to decrease.
Explanation:
q1 2,000 p1 250
revenue1 = quantity x price = 2,000x250 = 500,000
q2 1,700 p2 280
revenue2 = 1,700 x 280 = 476,000
<u>Midpoint formula:</u>
Ep = -1.432432432
As the price elasticity is above -1 the decrease in quantity is greater than the decrease in price thus, the revenue of the firm decreases if increase the price.
Answer:
112 customers per day
Explanation:
For computing the needed capacity requirement, first we have to find out the new utilization rate which is shown below:
Capacity cushion = 100% - average utilization rate
25% = 100% - average utilization rate
So, the average utilization rate is 75%
Now the needed capacity requirement is
Utilization rate = Average output rate ÷ Maximum capacity × 100
75% = 84 ÷ Maximum capacity × 100
So, the maximum capacity is 112 customers per day
We simply applied the above formula to determine the needed capacity requirement
Answer:
The correct answer is Seconds.
Explanation:
Transactions on the stock exchange have a very volatile dynamic, and the times in which the transactions are generated are usually very short due to the volume of trading that is handled. In the case of stocks taking into account the level of reputation of a stock exchange, it is very common that striking prices are managed that end up producing the movements in a minimum short time.
Answer:
It is not a legitimate excuse for engaging in unethical projects
Explanation:
Ensuring scientific integrity and avoiding professional misconduct is a collective role of Scientists and Engineers. Every professional, engineers inclusive, must ensure they stay committed and faithful to the oath of practice they have sworn to. Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity. Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.
Every engineer must be familiar with the code of ethics of the profession, abide by it, and report erring professionals for punitive measures to be taken rather than giving excuses for carrying out an unethical project.
The concept of responsible conduct emphasizes ethical decision making, professional responsibilities, and strict adherence to professional standards and values. Every engineer and professional must take into cognizance all the responsible conducts required by their professions
