Answer:
Mointaintop should charge 84.18 dollars per round of golf to achieve his desired return.
Explanation:
return:
50,000,000 x 12% = 6,000,000
fixed cost: 24,000,000
Variable cost: 16 per golfer
golfers expected 440,000
It should price to pay up the variable cost, fixed cost and achieve the 12% return:
S = 84,18181818181818
It should charge per round 84.18 dollars
Answer:
Total cost= $3,595
Explanation:
Giving the following information:
Estimated fixed overehad= $155,000
Estimated variable manufacturing overhead= $3.40 per machine-hour
Estimated machine-hours= 50,000
Job A881:
Total machine-hours 100
Direct materials $645
Direct labor cost $2,300
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (155,000/50,000) + 3.4
Estimated manufacturing overhead rate= $6.5
Total cost= direct material + direct labor + allocated overhead
Total cost= 645 + 2,300 + (6.5*100)
Total cost= $3,595
Answer:
$11.36
Explanation:
Data provided in the question:
Annual growth rate for 4 years = 15% = 0.15
Growth rate after 4 years = 8% = 0.08
Current dividend paid, D0 = $0.50 per share
Required rate of return = 14% = 0.14
Now,
Dividend paid for the next year = Current dividend × ( 1 + growth rate )
Thus,
Do = $0.50
D1 = $0.50 × ( 1 + 0.15 ) = $0.575
D2 = $0.575 × ( 1 + 0.15 ) = $0.661
D3 = $0.661 × ( 1 + 0.15 ) = 0.7604
D4 = $0.7604 × ( 1 + 0.15 ) = $0.8745
D5 = $0.8745 × ( 1 + 0.08 ) = $0.9444
Therefore,
Current Price = [ ₀⁴∑ (Dividend ÷ (1 + r )ⁿ) ] + [ D5 ÷ ( r - g ) ] ÷ (1 + r)⁴
Here,
n is the year
r is the required rate of return
thus,
= $0.575 ÷ (1 + 0.14) + $0.661 ÷ (1.14)² + $0.7604 ÷ (1.14)³ +$0.8745 ÷ (1.14)⁴ + [ ($0.9444 ÷ (0.14 - 0.08)) ] ÷ 1.14⁴
= $11.36
Answer:
C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Explanation:
given data
State 1 State 2 State 3
Probability 25% 50% 25%
Spot rate $ 2.50 /£ $ 2.00 /£ $ 1.60 /£
P* £ 1,800 £ 2,250 £ 2,812.50
P $4,500 $4,500 $4,500
solution
company holds portfolio in pound. so to get hedge, they will sell that of the same amount.
we get here average value of the portfolio that is
The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)
The average value of the portfolio = 2278.13
so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Answer:
The question is incomplete:
<em>The analysts were concerned because not only was Porsche a late entry into the market, but also the introduction of the Cayenne might damage Porsche's reputation as a maker of high-performance automobile. In evaluating the Cayenne, would you consider the possible damage to Porsche's reputation as erosion? </em>
In marketing, brand erosion means that customers will value the brand less and their perceived value will decrease. Luckily for Porsche, they did not listen to them. The Cayenne is by far Porsche's largest source of revenue and profits.
Porsche is a brand that most people associate with luxury sports car, and their most famous model, the 911, has barely been modified during the last 50 years. But as the SUV market increased in size, their profits profits started to shrink. Many Porsche purists despise Cayennes and Macans, but the fact is that they increased the total number of units sold way beyond anyone's expectations.
Nowadays, more people view Porsche as a luxury car manufacturer and more people want to buy their products. A small number of consumers felt disappointed, but a vast majority were pleased.
