Answer:
Option "C" is the correct answer to the following statement.
Explanation:
Given:
Total number of shares = 3,000
Stock dividend rate = 5%
Total Amount of shares = 3,000 x $10
= 30,000
Number of stock Dividend = 30,00 x 5%
= 150
Total Number of stock after stock dividend = 3,000 + 150
= 3,150
Per share of common stock after stock dividend = Total stock dividend amount / Number of stock after stock dividend
= 30,000 / 3,150
= 9.523
9.52 (approx)
Answer:
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
or market rate of return
Plugging in the values for P0, D1, and g, we can calculate the value of r or market rate of return on the stock to be,
37.73 = 3.70 / (r - 0.058)
37.73 * (r - 0.058) = 3.7
37.73r - 2.18834 = 3.7
37.73r = 3.7 + 2.18834
r = 5.88834 / 37.73
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Answer:
the same quantity of output as a perfectly competitive market. If anything is wrong let me know since I'm new to answering questions
Explanation:
Answer:
$52,991
Explanation:
The computation of the cash flow from assets is shown below:
As we know that
Cash flow from assets = cash flow to shareholders + cash flow to creditors
where,
cash flow to shareholders
= Dividend paid - new equity issued
= $27,950 - $25,250
= $2,700
And, the cash flow to creditors is
Cash flow to creditors = Interest paid - closing balance of long term debt + beginning balance of long term debt
= $28,941 - 0 + $21,350
= $50,291
So, the cash flow form assets is
Cash flow from assets = cash flow to shareholders + cash flow to creditors
= $2,700 + $50,291
= $52,991
