Answer:
30.92%
Explanation:
You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM
<u>Dividend discount model;</u>
cost of equity; r = (D1/P0) +g
whereby, D1 = next year's dividend = 3.00
P0= current price = 13.65
g = dividend growth rate = 11% or 0.11 as a decimal
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r= 0.3298 or 32.98%
<u>Using CAPM;</u>
r = risk free + beta (Market risk premium)
r = 0.049 + (2.8 * 0.0856)
r = 0.049 + 0.2397
r = 0.2887 or 28.87%
Next, find the average of the two cost of equities;
=(32.98% + 28.87% )/2
= 30.92%
Answer:
When responding to questions face-to-face, how should the response be organized?
By asking for clarification
Explanation:
Words could misinterpreted in diverse ways, this is why clarification should be made clearly in order to avoid such. Asking of question during a face-to-face discussion gives room for words simplicity and clear usage of words, hence; gives no room for misconceptions or misinterpretation
Answer:
Marketability describes an attribute of an investment that means it can be sold at any time. Liquidity describes an attribute of an investment that means it can be sold at any time close to the value of the original investment.
Explanation:
Answer:
c. credit to Additional Paid-in Capital
Explanation:
The journal entry to record the difference is shown below:
Cash A/c Dr $75 million
To Treasury stock A/c $70 million (1 million shares × $70 per share)
To Additional paid in capital - in excess of par $5 million
(Being the issuance of treasury stocks is reported and the amount remaining is credited to the additional paid-in capital account)
Logistic population growth produces an S cube when plotted over time. Logistic popular growth is described as the rapid increase of the population and then it slows down as the population becomes large.
