Answer:
Decrease in purchasing power =$(96.67)
Explanation:
To determine the alteration in purchasing power, we assess the value of the IRA after three years relative to its worth considering prices from three years ago.
The value of $5,500 after three years equals 5,500 × 1.012^3 = 5700.385
The purchasing power of $5,700.38 based on past prices for three years earlier
=5700.385504 × 1/(1.018^3)
= $5403.32
Change in purchasing power = $5403.32 - $5,500= $(96.67)
Decrease in purchasing power =$(96.67)
Answer:
$60000
Explanation:
A total of 1000 items are to be manufactured each week for a duration of 30 weeks.
Calculating the total number of products gives us 30 * 1000
= 30000
The filter requires changing after every 100 products, with each filter costing $50.
The total number of filters utilized is
= 30000/100
= 300.
Thus, the cost per product equals $1.5
The overall cost can be determined as
($1.5*30000)+($50*300)
= $45000+$15000
= $60000
The intrinsic value of Stock C is $300. The expected dividend to be paid is $3, with a dividend growth rate of 9%. Stock C requires a return of 10%, while Stock D requires a return of 13%. We determine the intrinsic value using the DDM method. The intrinsic value formula is Upcoming Dividend ÷ (Required rate of return - Growth rate). In this case, it calculates to 300, indicating the intrinsic value of Stock C.
