Answer:
Intrinsic value of Stock C is 300
Explanation:
given data
expected pay dividend = $3
growth rate of dividends = 9%
stock C require a rate of return = 10%
stock D require a rate of return = 13%
solution
we get here intrinsic value by the DDM method
intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock ) .................1
intrinsic value =
intrinsic value =
intrinsic value = 300
so intrinsic value of Stock C is 300
Answer:
Break Even Point
In Units = 2,000 units
In value = $80,000
Explanation:
Break even Point =
When we use contribution per unit, we get the break even point in units sales.
When we use the contribution margin as a percentage of sales we get break even sales in value.
Contribution per unit = $20
Contribution margin in percentage = $20/$40 = 50%
Therefore, Break even Point in units =
Break even units = 2,000
Break Even Point in value =
Sales to be made in value at break even = $80,000
Answer:
Explanation:
Data given and notation
represent the sample mean
represent the standard deviation for the sample
sample size
represent the value that we want to test
represent the significance level for the hypothesis test.
t would represent the statistic (variable of interest)
represent the p value for the test (variable of interest)
State the null and alternative hypotheses.
We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:
Null hypothesis:
Alternative hypothesis:
We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:
(1)
t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".
Calculate the statistic
We can replace in formula (1) the info given like this: