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Oksanka [162]
1 year ago
7

If ABC corporation paid a dividend of $6 per share last year. The stock currently sells for $80 per share. You estimate that the

dividend will grow steadily at a rate of 6% per year into the indefinite future. What is the cost of equity
Business
1 answer:
saul85 [17]1 year ago
4 0

The cost of equity is 13.95%.

<h3>What is stock?</h3>
  • Stock (sometimes known as capital stock) in the financial industry refers to the shares into which ownership of a corporation or company is divided.
  • A single share of stock represents a fractional ownership interest in the company based on the total number of shares.
  • The shareholder (stockholder) will then typically be entitled to that portion of the company's earnings, proceeds from the sale of company assets (after paying off all senior claims such as secured and unsecured debt), or voting rights, with these rights frequently being distributed in proportion to the amount of money each stockholder has invested.
<h3>What is Share?</h3>
  • A share is a unit used in mutual funds, limited partnerships, and real estate investment trusts in the financial markets.
  • Share capital is the collective term for an organization's shares.
  • A shareholder (or stockholder) of a corporation is someone who owns shares in that company.
  • A share is an undividendable piece of capital that expresses the shareholder's ownership of the company.

Learn more about Share here:

brainly.com/question/13931207

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Please i need an urgent answer what is feeding regime​
Dvinal [7]

Answer: A plan that specifies a diet, amount and schedule of nutritional

6 0
2 years ago
Bottle Top, Inc. recently announced they will pay their first annual dividend next year in the amount of $0.75 a share. The divi
Korolek [52]

Answer:

$12.50

Explanation:

Data provided in the question

Annual dividend next year = $0.75

Growth rate = 4%

Required rate of return = 10%

So by considering the above information, the price of the share is

= Next year dividend ÷ (Required rate of return - growth rate)

= $0.75 ÷ (10% - 4%)

= ($0.75) ÷ (6%)

= $12.50

Hence we considered all the information which is given in the question

4 0
3 years ago
The Assembly Department of​ ByteSize, Inc., manufacturer of​ computers, incurred $ 290 comma 000 in direct material costs and $
andreev551 [17]

Answer:

The cost per equivalent unit of production​ (EUP) for conversion costs is​ $116.67

Explanation:

The cost per equivalent unit of production​ (EUP) for conversion costs is​ = 70000/600= $116.67

3 0
3 years ago
Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wil
Hatshy [7]

Answer:

an externality

Explanation:

Externality -

It is the cost or the benefit received by the third party , is known as externality .

The third party does not have any control over the creation of the cost or the benefit .

The externality can be negative as well as positive and can arise from the production or consumption of the services and goods .

hence , the correct term fro the given statement is an externality .

5 0
3 years ago
A company's ability to achieve and maintain a unique and valuable competitive position both within a nation and globally, genera
slega [8]

It is known as competitive advantage.

Competitive advantage refers to factors that allow a company to produce goods or services more efficiently or at a lower cost than competitors. These components allow the manufacturing unit to generate more sales or profits than its competitors in the market.

It is the favorable position that a firm seeks in order to outperform its competition.

Competitive advantages are classified into two types: comparative advantages and differentiated advantages.

A company's comparative advantage is its ability to manufacture something more effectively than a rival, resulting in larger profit margins.

A differential advantage occurs when a company's goods are seen to be both distinctive and of greater quality than those of a rival.

To know more about competitive advantage click here:

brainly.com/question/17189107

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5 0
2 years ago
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