The worlds first and modern bank opened during the 14th century in Florence, Italy and later many branches were established in other parts of Europe. Even though the banking system became very crucial in the 14th century, the Bardi and Peruzzi families were able to start and establish several branches during this century.
Answer:
A)
risk free rate = 8%
market rate = 15%
Xyrong's beta = 1.2
pays 40% of income in dividends
latest EPS = $10
ROE = 18%
k = 8% + (1.2 x 7%) = 16.4%
g = ROE x (1 - 40%) = 10.8%
div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432
stock price = $4.432 / (16.4% - 10.8%) = $79.14
B)
div0 = $4
div1 = $4.432
price0 = $103
price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69
holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%
Answer:
a. $133,000
Explanation:
Computation of inventory purchased
Beginning ($51,000)
Cost of goods sold $130,000
Ending $55,000
Purchases during the year $134,000
Computation of amount paid for purchases
Beginning payable $32,000
Purchase during the year $134,000
Ending payable ($33,000)
Cash payments for purchases of merchandise $133,000
A. Technology , the use of kiosks will replace the jobs of some workers.
Answer:
A. How much time would it take the two students to complete the project if they divide the two tasks equally?
- James needs 10 hours to complete half the task and Jane needs 16 hours to do her part = total work 26 hours
B. How much time would it take the two students to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
- If they specialize, then Jane should do the calculations (12 hours) and James should prepare the slides (10 hours) = total work 22 hours
C. If James and Jane have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
- Yes, Jane should pay James so that he does the whole work all by himself. Since James opportunity cost is $5 per hour, his total economic cost of doing the work is $100, and half of that is $50. Jane's economic cost of doing her part is $60 (= 12 x $5), so if she pays any amount lower than $60 and equal or higher than $50 to James, then they would both win.
Explanation:
50 powerpoint slides
James needs 10 hours to do the calculations and 10 hours to prepare the slides = 20 hours total / 2 = 10 hours
Jane needs 12 hours to do the calculations and 20 hours to prepare the slides = 32 hours total / 2 = 16 hours
James's opportunity cost of doing the calculations or preparing the slides is 10 / 10 = 1
Jane's opportunity cost of doing one hour of calculations is 20 / 12 = 1.67 hours of preparing slides.
Jane's opportunity cost of doing one hour of preparing slides is 12 / 20 = 0.6 hours of calculations.
