Answer:
2018: $78 million
2019: $468 million
2020: $234 million
Explanation:
Given that State Construction incurred costs as follows:
Year Cost
2018 $60 million
2019 $360 million
2020 $180 million
Total cost = $60 million + $360 million + $180 million = $600 million
Percentage to total cost ratio is:
For 2018 = $60 million / $600 million = 0.1,
For 2019 = $360 million / $600 million = 0.6,
For 2020 = $180 million / $600 million = 0.3.
Revenue = Percentage to total cost ratio × Contract price.
Contract price = $780 million
For 2018, Revenue = 0.1 × $780 million = $78 million
For 2019, Revenue = 0.6 × $780 million = $468 million
For 2020, Revenue = 0.3 × $780 million = $234 million
<u>Answer:</u>
The correct option is Unit of account
<u>Explanation:</u>
One of the functions of money is Unit of accounts in economics. The worth of an object is measured in a distinct currency. One of the downfalls of unit of account is that it is regarded as the steady unit of account but inflation factor devastate the said assumption that money is steady. It is regarded as the basic property of the money.
Thus, the correct option will be Unit Of Account.
Answer:
The current stock price should be at $60.15.
Explanation:
We have the dividend paid next year = 1.05 x 1.25 = $1.3125.
So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:
[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.
The present value of the dividend stream from year 8 to infinity ( growing perpetuity):
[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.
The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.
Thus, the answer is $60.15 per share.
