One of the greatest risks of being entrepreneur is the risk of business failure
One of the greatest risks of being an entrepreneur is the possibility of business failure. Starting a new business is inherently risky, as there is no guarantee that the business will be successful.
Entrepreneurs may invest significant time, money, and resources into their businesses, but still be unable to generate sufficient revenue to cover their costs or turn a profit. Business failure can be financially and emotionally devastating for entrepreneurs, as well as damaging to their reputation and future career prospects.
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$4 379 83
54 739 95
$5.076.55
Answer: $4,379.83
Explanation:
Given the following details:
Periodic payment = $550
Interest rate = 11%
Number of periods = 20 years
Present Value (PV) = P[(1 - (1 + r)^-n) / r]
Where
P = periodic payment = $550
r = Interest rate = 11% = 0.11
n = number of periods = 20
PV = 550[(1 - (1 + 0.11)^-20) / 0.11]
PV = 550[(1 - (1.11)^-20) / 0.11]
PV = 550[(1 - 0.1240339) / 0.11]
PV = 550[0.8759660 / 0.11]
PV = 550(7.9633281)
PV = 4379.8304
PV = 4379.83
Answer:
B. 37.8%, 10.8%, 162.5%
Explanation:
1. Changes in Net Sales
We know,
Percentage changes in Net sales from previous year to current year =
Given,
= $62,000
= $45,000
Therefore,
Percentage changes in Net Sales =
Percentage changes in Net Sales = 37.8% (Rounded to 1 decimal Places)
Therefore, Net sales changes 37.8% from 2016 to 2017.
2. Changes in Cost of Goods sold
We know,
Percentage changes in Cost of goods sold from previous year to current year =
Given,
= $41,000
= $37,000
Putting the value in the above formula,
Percentage changes in COGS =
Percentage changes in COGS = 10.8%
Therefore, Cost of goods sold changes 10.8% from 2016 to 2017.
3. Changes in Gross Profit
We know,
Percentage changes in Gross Profit from previous year to current year =
Given,
= $21,000
= $8,000
Hence,
Percentage changes in Gross Profit =
Percentage changes in Gross Profit = 162.5%
Therefore, Gross Profit changes 162.5% from 2016 to 2017.
Answer:
Cost of Equity 8.794%
Explanation:
We can solve for the cost of equity using the CAPM
risk free 0.0291
premium market = market rate - risk free 0.071
beta(non diversifiable risk) 0.88
Ke 0.09158 = 9.158%
Or using the gordon dividend grow model
D= 3.57
return = ?
growth 0.0325
stock = 68.91
we solve for return:
return = 0,08430670 = 8.43%
Now we have two diferent rates, so we can do an average to get the best estimate cost of equity
(9.158 + 8.43)/2 = 8.794%
The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.
Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.
#SPJ3
Answer:
15.50%
Explanation:
The computation of the cost of retained earning is shown below:
As we know that
Price = Dividend × (1 + growth rate) ÷ (required rate of return - growth rate)
$25 = $2.50 × (1 + 0.05) ÷ (required rate of return - 5%)
$25 = $2.625 ÷ (required rate of return - 5%)
After solving the required rate of return is 15.50%
We simply applied the above formula to find out the cost of retained earning
Answer:
It waster $74,941.2 per year
Explanation:
The procedure is as follow:
1.- EOQ
D = annual demand 230 units x 12 month = 2,760
S= setup cost = ordering cost = 38
H= Holding Cost= 10% of unit cost 39.60
EOQ = 72.78028371 = 73
2.- Calculate Cost:
EOQ cost:
orders 2,760 / 73 = 37.80 = 38 order x $38 each = $1,444
holding cost: 73 x 39.6 = $2,890.8
Total: 1,444 + 2,890.8 = 4,334.8
Current Cost:
orders: 2,760 / 2,000 = 1.* = 2 order per year x $38 each = $76
holding cost: 2,000 x 39.6 = 79.200
Total 79,200 + 76 = 79,276
3.- Difference:
79,276 - 4,334.8 = 74,941.2
A paycheck is a salary the employee or worker gets. Hope receives a paycheck every 2 weeks.
A paycheck means the salary or wages an employee or worker gets for doing the work under their employment by the employer.
The frequency of a paycheck usually depends on the period of work. i.e a month in most cases but here Hope receives a paycheck every 2 weeks.
Therefore, the above statement aptly describes the paycheck.
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Answer:
every 2 weeks
Explanation: