Answer:
$68.23
Explanation:
In this question, we apply the dividend growth rate model which is shown below:
The computation of the current share price is shown below:
= (Current year dividend) ÷ (Rate of return on company stock - growth rate)
= ($4.23) ÷ (10.6% - 4.4%)
= ($4.23) ÷ (6.2%)
= $68.23
We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate
Answer:
$400
Explanation:
From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.
The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.
The set up cost of the butterfly spread can be calculated as follows:
Setup cost = ($11×100) + ($18×100) – ($14×200)
= 1,100 + 1,800 – 2,800
Setup cost = $100
Net gain = Options payoffs – Setup cost = $500 - $100 = $400
Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.
Answer:
$30,000
Explanation:
In this question, the matching account principle is used which means the total revenue is matched with the total expenses in a given year.
The computation of the warranty expense is shown below:
= Number of selling units × average unit sold per unit
= 2,000 unit × $15 per unit
= $30,000
The whole amount $30,000 should be recorded as warranty expense
Answer:
8,200
Explanation:
You have to email the list of 5000 names first and then you have also second list for emailing consists of 3900 names. The sum of both the list is equal to 8,900. But there are 700 names which are common on both lists. You have to subtract 700 from 8,900 to identify the number of unique names you have. The answer you will get after subtraction is 8,200.
Answer:
The answer is E.
Explanation:
Total payment from customers is:
$537,400 + $737,500
= $1,274,900
Weighted average delay from customer A is:
($537,400/$1,274,900) x 3
=1.26 days
Weighted average delay from customer B is:
($737,500/$1,274,900) x 1
=0.58 day
Therefore, total weighted average delay is:
1.26 days + 0.58 day
=1.84days
