Answer:
Required rate of return is 14.99%
Explanation:
Given:
Price of stock (Po)= $23.57
Dividend (Do) = $2
Growth rate (g)= 6% or 0.06
Using dividend growth model to calculate required rate of return:
Substituting values in above formula, we get:
r = 
= 0.1499 or 14.99%
Therefore, required return of company's stock is 14.99%
Answer:
the WACC of an all-equity financed version of the firm.
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
for a project to be accepted, the internal rate of return should be higher than the WACC
It is about knowing other people in the business that will get you into the door. Networking is the best way to find out about the company or other companies word of mouth.
Answer:
<u>Consider the offer</u>
Explanation:
Remember, for most companies their profits are dependent on the amount of sales. Thus, when products are delayed on route to reach their desired market it may affect the company financially. Thus, paying an “expediting fee” of €200 will a good strategy to reduce the waiting time, and it will be in the best interest of the Norwegian company.
