Answer:
The answers are:
A) 4.23 years
B) 1.08 years
C) Off course I would recommend Dave and Ellen to install these safety items, not only because they save money but also because they are very useful.
Explanation:
The cost of the deadlocks including installation is $110 for each exterior door ($220 total). The cost for installing smoke detectors is $24 for each floor ($48 total).
The discount that Dave and Ellen can get is
- $52 per year for installing the deadlocks
- $26 per year for installing the smoke detectors
A) It will take Dave and Ellen 4.23 years ($220/$52) to recover the money spent on the deadlocks.
B) It will take Dave and Ellen 1.08 years ("26/$24) to recover the money spent on the smoke detectors.
Answer:
Option (d) is correct.
Explanation:
P0 = D1 ÷ (ke - g)
Where,
P0 is the price = ?
Currently dividend paid, D0 = $1.62 a share
ke is the required return = 15.70%
g is the growth rate = 2.10%
D1 is the dividend at end of year:
= D0 × (1 + g)
= $1.62 × (1 + 0.021)
= $1.62 × 1.021
= $1.65402
Therefore,
P0 = 1.65402 ÷ (15.7% - 2.1%)
= 1.65402 ÷ (13.6%)
= $12.16
Therefore, the price of one share of this stock is $12.16
Answer:
The correct option is B,demand-based
Explanation:
Demand-based is the pricing strategy of hiking prices at busy at peak periods and charging modest prices at off-peak periods.
The reason for charging higher prices at peak periods the traffic at that time stretches the resources of the business,hence a little extra price is added as contribution towards maintenance of existing facilities and possible upgrade in the near future.
This approach is also known with telecommunication firms such as Vodafone and MTN.
If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.
