________ is not information generally found in your credit report.

Excelsior stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend

boyakko [2]

Answer:

30.92%

Explanation:

Use CAPM (Capital Asset Pricing Model) to find the cost of equity;

cost of equity ;r = risk free rate + Beta (Market Risk Premium)

risk free rate = 4.90% or 0.049 as a decimal

Beta = 2.8

Market Risk Premium = 8.56% or 0.0856 as a decimal

Next, plug in the numbers to the above CAPM formula;

r = 0.049 + 2.8(0.0856)

r = 0.049 + 0.23968

r = 0.2887 or 28.87%

Therefore, cost of equity using CAPM is 28.87%

Next. find cost of equity using Dividend growth model ;

r = (D1/P0) +g

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r = 0.3298 or 32.98%

Cost of equity using Dividend growth model is 32.98%

Find the average of the two to find the cost of equity of this stock;

= (28.87% + 32.98%) /2

= 61.85%/2

= 30.92%

3 0

3 years ago

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $

Alika [10]

Answer:

Part a. Record the transaction on the day the materials were bought.

Materials Account $180,000 (debit)

Cash $180,000 (credit)

Part b. Record the transaction on the day the materials were requisitioned

Work In Progress $165,000 (debit)

Materials Account $165,000 (credit)

Explanation:

Part a. Record the transaction on the day the materials were bought.

Recognise the Assets of Materials Purchased and Derecognise Cash to depict ouflow of economic benefits

Part b. Record the transaction on the day the materials were requisitioned

De-recognise the Materials applied in Production Process and Recognise the cost in Work In Progress Account

6 0

3 years ago

Identify two to three factors that affect revenue, expenses, and profit in the business of the Super Bowl:

scoundrel [369]

Answer:

Revenue

Ticket Sales - The Super Bowl is one of the most watched sporting events in the world and people pay top dollar to be able to attend it in the stadium. In 2019 the lowest estimate of revenue coming from ticket sales was $65 million.
Television Rights - Networks pay to be able to broadcast the Super Bowl as it will bring in a lot of money for them from Ads. Fox, CBS and NBC are said to pay upwards of $2.5 billion every year to broadcast it.
Merchandising - Millions are made in revenue from the sales of merchandise leading up to and after the big game.

Expenses

Security - With so many people coming to the event, there has to be a provision for both private and public security. This means that Police will have to be paid for overtime and private firms will have to be paid their due.
Cleaning - The stadium will have to be cleaned before, during and after the event so cleaning expenses will cost a bit too.
Ad Hoc staff - There will be a need for people who will not have a specific job title but will still be needed to run around and embark on errands.

Profits

The profits will depend on how much revenues exceeds costs by so all the above listed factors can affect profit.

5 0

4 years ago

Fern,Inc.has fixed costs of $400,000 and a contribution margin ratio of 30%.How much sales revenue must be earned for a profit o

malfutka [58]

Answer:

The correct option is C) $1,600,000.

Explanation:

This can be calculated using the following formula:

Sales revenue required = (Fixed cost + Targeted profit) / Contribution margin ratio .......................... (1)

Where;

Fixed costs = $400,000

Contribution margin ratio = 30%

Targeted profit = $80,000

Substituting the values into equation (1) we have:

Sales revenue required = ($400,000 + $80,000) / 30%

Sales revenue required = $480,000 / 30%

Sales revenue required = $1,600,000

Therefore, the correct option is C) $1,600,000.

7 0

3 years ago

Japanese taxes had to be paid in the form of rice by the village as a unit.

Scilla [17]

The answer to your question is A

6 0

4 years ago

​________ is not information generally found in your credit report.

________ is not information generally found in your credit report.