It's not enough details and I can't get what exactly you need. I guess you want to know what is v<span>iability of relevancy of insurance products. So it's very good thing that can save your business if you keep a factory that produces specific things from instant disasters.</span>
Answer:
e. 14.60%
Explanation:
The computation of Oval's cost of new common equity is shown below:-
Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)
Dividend = $1.50 × (1 + 4%)
= $1.56
Price of stock would be the price net of flotation cost
= $16 × (1 - 8%)
= $14.72
Required rate of return
= (1.56 ÷ 14.72) + 0.04
= 14.60%
The equation of (ending value minus beginning value) and income return totalled, then divided by beginning value is used to find "rate of return".
<h3>What is income returns?</h3>
The portion of a fund's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is calculated by adding the income return and the capital return together.
Rate of Return- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Some key features of rate of return are-
- ROI is computed by first dividing the net return by the investment's cost, then multiplying the result by 100. This new number, which represents the net return, is then obtained by subtracting the investment's original value from its final value.
- According to conventional thinking, a fair return on an investment in stocks is one that is at least 7 percent annually. Additionally, this relates to the S&P 500's average annual return when inflation is taken into account.
To know more about internal rate of return, here
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