Answer:
C
Explanation:
Mixed cost is a cost that consists of both fixed cost and variable cost
Fixed costs are costs that do not vary with output. e.g., rent, mortgage payments, depreciation
Variable costs are costs that vary with production
An example of variable cost is electricity costs of $3 per kilowatt-hour. If the factory is locked down, no electricity cost would be incurred.
The rental costs of $10,000 per month plus $0.30 per machine hour of use consists of both a fixed cost and a variable cost
the fixed cost is 10,000
the variable cost is $0.30 per machine hour
definition of management
Answer:
Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. ... There are several different resource types within management. Resourcing encompasses the deployment and manipulation of: Human resources. Financial resources.
Explanation:
Hope this helps you. Take care^_^
Revising for Conciseness - Rejecting Redundancies and PurgingEmpty Words
Concise writing will save your reader time and make your message easier to understand. During phase three of the 3-x-3 writing process, revise for conciseness by rejecting redundancies and purging empty words.
1. Which of the following options are redundancies? Check all that apply.
1) Adequate enough
2) Combined together
3) Big in size
4) Absolutely essential
Determine which empty words can be purged from the following sentence to make it more concise.
2. The Johnson report contained incomplete data that was unfinished.
1) Johnson report" and "incomplete"
2) No revision necessary
3) That was unfinished"
Read the passage, and then answer the question.
[1] This community needs programs assisting those in the reentry process. [2] JUMP High Schools’ efforts to provide better information for newly released juvenile offenders are commendable. [3] Basic fundamental information on reentry services is sorely needed in our community.
3. What types of revisions could be made to the passage to make it more concise? Check all that apply.
1) Purge empty words.
2) Drop unnecessary fillers.
3) Reject redundancies.
Answer:
Answer (A) - 1 and 2
Answer (B) - 3
Answer (C) - 2
Explanation:
There are three sections to this question.
PART A: Rejecting Redundancies
Among the 4 options given in this section, the redundancies are
1. Adequate enough
2. Combined together
Why? Because there is repetition in the phrases! Adequate is the same thing as Enough and Combined means the same thing as Together.
PART B: Purging Empty Words
For the statement given, the option containing the empty words is
3. "that was unfinished"
Why? Because this is the unnecessary phrase that needs to be eliminated from the sentence, not even for conciseness sake but for the sake of proper grammar and better comprehension by the reader.
PART C: Revising a Passage
For the passage given, the type of revision that could be made to make it more concise is
2. Drop unnecessary fillers
Why? Because the second statement in the passage was an unnecessary filler. It contained information that required story telling about the efforts of "Jump High Schools".
McCabe Manufacturing Co.'s budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 10,000 units of production, a flexible budget would show: Group of answer choices variable costs of $44,000 and $23,000 of fixed costs variable costs of $55,000 and $23,000 of fixed costs variable costs of $49,500 and $23,000 of fixed costs variable costs of $40,000 and $27,000 of fixed costs
Answer: variable costs of $49,500 and $23,000 of fixed costs
Explanation:
A flexible budget refers to the budget which adjusts to the volume levels of a company.
Based on the information given in the question, the variable cost will be:
= (44000/8000) x 90000
= $49500 variable
On the other hand, the fixed cost has been given as $23000.
Therefore, the flexible budget would show variable costs of $49,500 and $23,000 of fixed costs.
With crews working shifts that span 24 hours a day, what is the most important thing for Satya to keep in mind as she prepares her live talk that will be replayed to employees on other shifts
Answer: d. Look into the camera more than the live audience
Explanation:
It is best that Satya looks into the camera as the speech is being given because it will be replayed to other shifts. When it is replayed to those shifts, they need to get the impression that she is looking at them as she gives the speech.
This is not a necessity with the live audience because she is already in front of them and looking at the camera does not mean that she would not be looking at them based on the location of the camera. It is however, more important that she looks in the camera for the benefit of the next shifts.
If you want to have $1,500 in two years, how much money should you deposit each month if you can earn 5% per year (assume monthly compounding)
Answer: $59.56
Explanation:
Convert the figures to monthly figures.
Term = 2 * 12 months = 24 months
Rate = 5%/12 = 5/12%
The amount should be constant so it will be an annuity.
The $1,500 will be the future value of that annuity.
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate
1,500 = Annuity * ( ( 1 + 5/12%)²⁴ - 1) / 5/12%
1,500 = Annuity * 25.18592
Annuity = 1,500 / 25.18592
= $59.56
6. Hope corporation paid a dividend of $2.00 (D0) last year. The growth rate is expected to be 20 percent and 10 percent during the next two years, and then the growth rate is expected to be a constant 5 percent thereafter. The required rate of return on equity (rS) is 10 percent. What is the current stock price (P0)
Answer:
Current stock price = $46.02
Explanation:
Dividend just paid (D0) = $2
D1 = D0 * (1 + g) = $2 * (1.20) = $2.40
D2 = D1 *(1 + g) = $2.40 * (1.10) = $2.64
Terminal value = $2.64 * 1.05 / (0.10 - 0.05)
Terminal value = $55.44
Current stock price = Present value of cash flows
Current stock price = [$2.40 / (1.10)1] + [$2.64 / (1.10)2] + [$55.44 / (1.10)3]
Current stock price = $46.02
A representative firm with long-run total cost given by TC = 2,000 + 20 q + 5 q 2 operates in a competitive industry where the market demand is given by QD = 10,000 – 40 P. The long-run equilibrium output of the industry will be:
Answer:
Output = 22.88
Explanation:
Below is the given functions:
TC = 2,000 + 20 q + 5 q^2
QD = 10,000 – 40 P
P = (QD - 10000) / 40
Find the MC from TC.
Take tha first derivative of TC.
MC = 20 + 10q
Now TR = PQ
TR = ( (10000 - Q) / 40) Q ......QD = Q
TR = 10000Q/40 - Q^2 / 40
MR =250 - Q/20
Now equate = MR =MC
250 - Q/20 = 20 + 10Q
-0.05Q - 10Q = 20 - 250
-10.05Q = - 230
Q = 22.88
Output = 22.88
Moccasin Company manufactures cotton shirts. 12,000 shirts are produced during the first week of July. The unit quantity standard is 3 meters cloth per shirt and the actual quantity used was 0.50 meters per shirt. Determine the quantity of cloth that should be used for the actual output of 12,000 shirts.
Answer:
the quantity of cloth that should be used for the actual output of 12,000 shirts is 36,000 meters
Explanation:
The computation of the quantity of cloth is as follows:
Quantity of cloth that should be used is
= 12,000 × 3 meters cloth per shirt
= 36,000 Meters
hence, the quantity of cloth that should be used for the actual output of 12,000 shirts is 36,000 meters
The same is relevant
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement information for these three companies follows (in thousands):
YRC Union Pacific C.H. Robinson
Sales $4,697,500 $19,941,000 $13,144,413
Average total assets 1,824,700 55,159,000 3,436,058
Determine the asset turnover for all three companies.
Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
Particulars YRC UNP CH
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
This year, FGH Partnership generated $730,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. Ty, who owns a 45 percent interest; Mrs. Ude, who owns a 35 percent interest; and V Inc., which owns a 20 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. Byrd.
Required:
Identify the taxpayers who must pay tax on the partnership income and determine how much income must be reported by each.
Answer:
Mr. Ty - $164,250
Mrs. Ude - $127,750
V Inc. - $73,000
Ms. Byrd - $365,000
Explanation:
Since both, companies are equal partners. Therefore, the generated income of $730,000 will be divided between them equally i.e. $365,000 each.
Now this income will be divided amongst the company's members based on their percentage of interest in the company. This is done as follows:
Mr. Ty
= $365,000 * 45%
= $164,250
Mrs. Ude
= $365,000 * 35%
= $127,750
V inc.
= $365,000 * 20%
= $73,000
The corporation Beta has only one member Ms. Byrd. Therefore, all the income of Beta is 100% owned by Ms. Byrd at $365,000.
Both the companies (Triad LLC and Beta) will show their income as if it were reported by their respective members as follows:
Mr. Ty - $164,250
Mrs. Ude - $127,750
V Inc. - $73,000
Ms. Byrd - $365,000
How has persuasion changed in the digital age?
a. Persuasion is simple and more personal
b. Persuasive techniques are bold and blunt
c. Persuasive messages spread at warp speed
d. All businesses are in the persuasion business
e. The volume and reach of persuasive messages have exploded
Answer:
Explanation:
Persuasion has changed a lot in the digital age, based on the options listed, the ones that are true would be ...
c. Persuasive messages spread at warp speed
d. All businesses are in the persuasion business
e. The volume and reach of persuasive messages have exploded
The internet and social media have allowed businesses to quickly and easily target millions of individuals around the world. So it is no wonder that all businesses are in the persuasion business. Persuasive techniques are able to spread incredibly fast from person to person, as well as word of mouth if enough individuals begin to like your product/service. The internet and social media even allow businesses to target specific categories on populations.
John is a manager on a manufacturing line. He has cross-trained a few employees on all stations so that if a key employee calls in sick, another employee can fill in to do the job. John is making ______ plans.
Answer:the answer is contingency
Explanation:
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $350 and has a unit contribution margin of $130; the Adult model sells for $900 and has a unit contribution margin of $475; and the Recreational model sells for $1,050 and has a unit contribution margin of $525. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,550,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit).a. 1380 composite units. b. 8075 composite units. c. 811 composite units.d. 406 composite units. e. 16,150 composite units.
Answer:
Break-even point in composite units = 811 units
Explanation:
Number of modal;
5 Youth models
9 Adult models
6 Recreational models
Annual fixed costs total = $6,550,000
Find:
Break-even point in composite units
Computation:
Mixed contribution margin = 5[130] + 9[475] + 6[525]
Mixed contribution margin = 650 + 4275 + 3150
Mixed contribution margin = $8075
Break-even point in composite units = Annual fixed costs total / Mixed contribution margin
Break-even point in composite units = 6,550,000 / 8075
Break-even point in composite units = 811 units
2. Which of the following is most likely to raise a significant ethical issue? (select one).
Answer:
A Business School student looking at changes in structures of Small and Medium Sized Enterprises (SMEs) using publicly available information
Explanation:
Hammond Suppliers expect sales of 202,801 units per year with carrying costs of $3.08 per unit and ordering cost of $9.33 per order.Assuming the level of inventory is stable, what is the optimal average number of units in the inventory
Answer: 554 units
Explanation:
The formula to calculate the optimal average number of units in the inventory will be calculated as:
= EOQ/2
EOQ is the economic order quantity and this will be:
= √(2 × Annual demand × Ordering cost / Carrying cost
= √(2 × 202,801 × 9.33)/3.08
= ✓1228658.5
= 1108.5
Therefore, the optimal average number of units in the inventory will be:
= EOQ/2
= 1108.5/2
= 554.25
= 554 units approximately
The questions below also rely on the following assumptions: (reference the Tax Cuts and Jobs Act of 2017)
You are 30 years old and your employer sponsors a 401(k) plan with a 4% employer match.
You earn $100,000 of gross wage income. This income is expected to stay constant over the next three years.
At the start of every year you decide to invest 4% of your salary into your 401(k).
Your expected return on your investments is 5% per year.
You file your taxes as a single filer and you are in the 24% tax bracket.
The long term capital gains tax is 15%.
1. Calculate the total amount of funds that you expect to be in your 401(k) at the end of three years. Explain your answer.
2. At the end of the third year, you decide to withdraw $15,000 from your 401(k) to pay for some home improvements. Calculate how much tax, if any, you will owe on this withdrawal. Explain your answer.
3. During this same three year period you also invested in a Roth IRA. At the end of this three year period, your Roth IRA had cumulative contributions of $15,000 and earnings or gains of $5,000.
Suppose you decided to fund your home improvements by withdrawing from your Roth IRA instead of your 401(k). Calculate how much tax, if any, would you owe in this withdrawal. Explain your answer.
Answer:
1. The total amount of funds that you should expect to be in your 401(k) at the end of three years is:
$26,481.00.
This is the future value of $8,000 invested at the beginning of the year for 3 years (principal of $24,000 plus interest of $2,481).
2. Tax liability on this withdrawal = $3,600 ($15,000 * 24%). This is based on the amount withdrawn multiplied by the taxpayer's tax rate of 24%. The taxpayer does not pay tax on his contributions. Instead, tax is paid on withdrawals from the 401(k) plan unlike ROTH.
3. No tax would be paid on the withdrawal for home improvements. Tax is also not paid on the gain because tax has already been paid before the investment is made into the ROTH fund.
Explanation:
a) Data and Calculations:
Gross wage income = $100,000
Investment in 401(k) = $4,000 ($100,000 * 4%)
Employer's match in 401(k) = $4,000 ($100,000 * 4%)
Total annual investment in 401(k) = $8,000
N (# of periods) 3
I/Y (Interest per year) 5
PV (Present Value) 0
PMT (Periodic Payment) 8000
Results
FV = $26,481.00
Sum of all periodic payments =$24,000.00
Total Interest $2,481.00
Roth IRA cumulative contributions = $15,000
Earnings or gains on the Roth IRA fund = 5,000
Tax liability on the withdrawal = $0 ($20,000 * 0%)
Jed goes to the deli to purchase turkey that costs $6.71 per pound. State regulations indicate that the scale used in the deli must be accurate to within 1 20 pound. According to the scale, Jed's purchase weighs one-fourth pound and costs $1.68. How much might he have been undercharged or overcharged due to a scale error
Answer:
$0.333
Explanation:
Given :
Price per pound = $6.71
Accuracy should be within 1/20 pound
Weight of Purchase = 1/4 pound
Cost of purchase = $1.68
Since accuracy is within 1/20 pound ;
The weight of purchase will be within :
(1/4 - 1/20 ; 1/4 + 1/20)
(0.2 ; 0.3)
The weight of purchase would be within (0.2 ; 0.3) including factoring in the accuracy level.
Price per pound = $6.71
If weight is 0.2 pounds ; ($6.71 * 0.2) = 1.342
If weight is 0.3 pounds ; ($6.71 * 0.3) = 2.013
Difference :
$(2.013 - 1.68) = $0.333
Owing to scale error, Jed might have been under charged or overcharged an amount of $0.333
IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5% interest. IBM would record this loan as: A. Notes Payable. B. Notes Receivable. C. Accounts Receivable. D. Unearned Revenue.
Answer:
B. Notes Receivable.
Explanation:
Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable
Therefore it is a note receivable
Hence, the option b is correct
and, the same is to be considered and relevant
[The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 23,200 8,000 direct labor-hours Machine-related $ 5,000 10,000 machine-hours Machine setups $ 36,000 1,200 setups Production orders $ 27,000 600 orders Product testing $ 23,400 900 tests Packaging $ 37,000 3,700 packages General factory $ 54,800 8,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (
Answer:
Rustafson Corporation
Activity rates:
Activity Cost Pool Activity Rates
Labor-related $2.90 per direct labor-hour
Machine-related $0.50 per machine-hour
Machine setups $30 per setup
Production orders $45 per order
Product testing $26 per test
Packaging $10 per package
General factory $6.85 per direct labor-hour
Explanation:
a) Data and Calculations:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 23,200 8,000 direct labor-hours
Machine-related $ 5,000 10,000 machine-hours
Machine setups $ 36,000 1,200 setups
Production orders $ 27,000 600 orders
Product testing $ 23,400 900 tests
Packaging $ 37,000 3,700 packages
General factory $ 54,800 8,000 direct labor-hours
Activity rates:
Activity Cost Pool Estimated Overhead Cost Activity Rates
Labor-related $ 23,200/8,000 $2.90/direct labor-hour
Machine-related $ 5,000/10,000 $0.50/machine-hour
Machine setups $ 36,000/ 1,200 $30/setup
Production orders $ 27,000/600 $45/order
Product testing $ 23,400/900 $26/test
Packaging $ 37,000/3,700 $10/package
General factory $ 54,800/8,000 $6.85/direct labor-hour
On January 1, 2020, Rainbow Company paid cash to purchase an automobile. The car dealer gave Rainbow a $3,000 cash discount off the $31,000 list price. However, Rainbow paid an additional $5,000 to equip the car with a more luxurious interior and high tech lighting so it would have greater appeal. Rainbow Company expected the car to have a five-year useful life and a $5,000 salvage value. Rainbow also expected to use the car for 140,000 miles before disposing of it. Rainbow used the car, and it was driven 20,000 / 30,000 / 40,000 / 30,000 / 20,000 miles during each use year respectively. Rainbow sold the car on January 1, 2026, for $6,000 cash the double declining balance method of depreciation.
Required:
What is the percentage depreciation Rainbow will use?
Answer:
Rainbow Company
The percentage depreciation Rainbow will use is:
= 40%
Explanation:
a) Data and Calculations:
Purchase (list) price = $31,000
Cash discounts = (3,000)
Additional interior cost 5,000
Net purchase price = $33,000
Salvage value = (5,000)
Depreciable amount = 28,000
Estimated useful life = 5 years
Double-declining-balance method of depreciation:
Depreciation rate = 100/5 * 2 = 40%
Estimated usage for the car = 140,000 miles
Annual usage:
Year 1 = 20,000
Year 2 = 30,000
Year 3 = 40,000
Year 4 = 30,000
Year 5 = 20,000
January 1, 2026 sales proceeds = $6,000
công ty P&G sử dụng hệ thống thông tin nào
Answer:
SAP Human Resource system which handles all employees that work for P&G.
Explanation:
A financial analyst who is employed by a large money management firm (e.g., a hedge fund or insurance company) whose reports are used only for internal firm use is called a(n): Buy-Side Analyst Floor analyst Sell-Side Analyst Independent Analyst Private analyst
Answer:
Private analyst
Explanation:
A Private Analyst is a person in which the research and the analysis is to be done for the companies in order to employed them for identified the undervalued opportunities
So as per the given situation since the reports are to be used for the internal purpose so this we called as the private analyst
Therefore the last option is correct
For the year ending December 31, 2022, Swifty Inc. reports net income $144,000 and cash dividends $87,000. Determine the balance in retained earnings at December 31, assuming the balance in retained earnings on January 1, 2022, was $222,000.
Answer:
$279,000
Explanation:
Particulars Amount
Retained earnings Jan. 1, 2022 $222,000
Add: Net Income $144,000
Sub-total $366,000
Less: Dividend declared $87,000
Retained earnings Jan. 31, 2022 $279,000
Suppose that when the price of peanut butter falls from $2 to $1 per jar, the quantity of jelly purchased rises from 14 million jars to 16 million jars. Instructions: Round your answer to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The cross-price elasticity of demand between peanut butter and jelly using the mid-point method is: . The goods are (Click to select) .
Answer:
-0.20
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Cross Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 16 million - 14 million = 2 million
Average = (16 million + 14 million) / 2 = 15 million
2 / 15 = 0.133
midpoint change in price = change in price / average of both price
change in price = 1 - 2 = - 1
average of price =(2 + 1) / 2 = 1.5
-1/1.5 = -0.67
0.1333 / -0.67
MotorCity, Inc. purchased 52,000 shares of Shaw common stock for $256,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a:
Answer:
Debit to Long-Term Investments for $256,000
Explanation:
In the case when the shares are purchased they are considered for an investment that could generate the profit in near future. So here the long term assets is to be classified as the asset and the same is to be debited
Therefore it should be debited to the long term investment for $256,000
The same is relevant
Alin Co. purchases a building for $300,000 and pays an additional $30,000 for closing costs (brokerage, title, attorney fees). Alin also pays $20,000 in renovations, including painting, carpet, lighting, etc. Alin should record the cost of the building at: Multiple choice question. $320,000. $300,000. $330,000. $350,000.
Answer: $350,000
Explanation:
When recording the cost of a fixed asset, all the costs that were incurred to acquire the asset and make it ready for production should be included.
In this case those costs include the actual purchase price, the closing costs and the renovations.
Total building cost is therefore:
= Purchase price + Closing costs + Cost to prepare building
= 300,000 + 30,000 + 20,000
= $350,000
If aggregate expenditures increase by $14 billion and equilibrium GDP consequently increases by $70 billion, then the marginal propensity to consume in the economy must be
Answer:
0.2
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = amount consumed / disposable income
Marginal propensity to save is the proportion of disposable income that is saved
Marginal propensity to save = amount saved / disposable income
MPC + MPS = 1
MPC = $14 billion / $70 billion = 0.2
In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is $0.01 per yen. Suppose the price of the stocks falls to 600 yens each at time T +1. Nothing else changes. Compute the change in US external wealth between periods T and T +1 in dollars.
Answer:
Change in US external wealth between periods T and T +1 in dollars = -$100
Explanation:
Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:
Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700
Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600
Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100
Pop Evil, Inc.'s, net income for the most recent year was $10,112. The tax rate was 21 percent. The firm paid $3,430 in total interest expense and deducted $2,162 in depreciation expense. What was the cash coverage ratio for the year
Answer:
Cash coverage ratio =4.32
Explanation:
Net income = $10,112
Tax rate = 21 %
interest expense = $3,430
Depreciation expense =$2,162
Cash coverage ratio =EBIT + Non-cash expenses ÷ Interest expense
but
EBIT= Net Income/ 1 -Tax rate=12,800
EBIT= $10,112/1-0.21=$12,800
Cash coverage ratio =EBIT + Non-cash expenses(depreciation) ÷ Interest expense
Cash coverage ratio =$12,800+$2,162 / $3,430
Cash coverage ratio =4.32
Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $24.00 a share. What is the market rate of return
Answer:
Market rate of return = 12.45%
Explanation:
Below is the calculation of market rate of return.
D = Just pad dividend x (1 + growth rate)
D = 2 x (1 + 0.038)
D = 2.076
Now use the below formula to find the market rate of return.
Market rate of return = (D/current selling price) + Growth rate
Market rate of return = (2.076 / 24) + 0.038
Market rate of return = 12.45%
