Answer:
Cost of external equity= 26.9%
Explanation
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
The model can me modified to determined the cost of equity having flotation cost as follows:
Ke = D(1+r )/P(1-f) + g
Ke= Cost of equity
D- current dividend,
D(1+g) - dividend next year
p- price of stock - 31,00$
f - flotation cost - 14%
g- growth rate - 7%
Ke= 5.30/31× (1-0.14) + 0.07
= 0.2687997 × 100
= 26.9%
Answer:
A. revenue and expense
Explanation:
An income statement is among the three important financial statements prepared by a business entity. It summarizes all incomes (revenues) and expenses (costs) of a company in a particular financial year. Total costs are subtracted from the total revenue to get the net income.
An income statement is prepared to show the profits of a business in a particular financial year. A positive net income indicates profits, while a negative net income denotes losses.
Answer:
The correct option is B
Explanation:
The return on assets would be:
Return on assets (ROA)= Assets × Return
= $45,000,000 × 12%
= $5,400,000
Return per customer = ROA / Number of golfers
= $5,400,000 / 400,000
= $13.50
Fixed Cost per Customer = Fixed Cost / Number of golfers
= $20,000,000 / 400,000
= $50
Cost to be charged per customer = Profit + Fixed Cost + Variable Cost
= $13.50 + $50 + $15
= $78.50
Answer:
$889.70
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The Initial investment is $10,000
All yearly cash flows would be
= Annual amount received × PVIFA for 4 years at 4%
= $3,000 × 3.6299
= $10,889.70
Refer to the PVIFA table
So, the net present value is
= $10,889.70 - $10,000
= $889.70
Confidential papers are extremely well-protected materials. So, if I come across a document with Confidential scrawled on it, I'll simply tuck it under the door.
<h3>What basically constitutes confidential papers?</h3>
All plans, designs, renderings, reports, analyses, studies, records, agreements, summaries, notes, and other materials and documents relating to the Developer, whether written or given orally, are considered Confidential Documents.
As a result, in the scenario above, I will simply place the confidential paper in the drawer of a coworker.
Learn more about confidential papers:
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