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Delvig [45]
3 years ago
9

Luther industries has a dividend yield of 4.5% and a cost of equity capital of 10%. luther industries' dividends are expected to

grow at a constant rate indefinitely. the growth rate of luther's dividends is closest to ________.
Business
2 answers:
Darina [25.2K]3 years ago
8 0
<span>A) 5.5%

A) rE = Div1 / P0 + g
0.1 = 0.045 + g, so g = 5.5%</span>
jenyasd209 [6]3 years ago
8 0

Answer:

5.5%

Explanation:

GIven that:

Luther industries has a dividend yield = 4.5%;        &

The cost of equity capital which is the required rate of return of shareholders = 10%

The growth rate of Luther's dividends is the percentage growth rate of  Luther's dividends over a certain period of time which is can be calculated by the difference in the cost of equity capital and the dividend yield.

∴

growth rate of Luther's dividends =  = (10 - 4.5 )%

= 5.5%

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During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for
LuckyWell [14K]

Answer:

$525,000

Explanation:

The amount to be recognized as research and development expense for the year includes  the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,

In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per  generally acceptable accounting principles

4 0
3 years ago
All things equal, a magma will have __________ viscosity than a lava
mixas84 [53]
The answer to this question is Lower
Viscosity refers to the rate of thickness on a certain substance compared to another. Unlike magma, Lava is the mixture of various liquid, crystals, and some elements such as  silicon<span>, oxygen, aluminum, calcium, iron, magnesium </span>sodium<span>, potassium, phosphorus, and titanium, which makes it significantly more thicker compared to magma.</span>
3 0
3 years ago
A teacher has decided to take her fifth grade class to a play. The manager of the theater agreed to discount the regular ​$35 pr
MArishka [77]

Answer:

40 students

Explanation:

The cost of the bus is $480

For x students, the cost of each ticket will be 35 - 0.30x

The total cost of the tickets for x students will be x(35 - 0.30x)

To find the number of students that will make the cost per student equal to $33, we solve for x:

<u>480+ x(35 - 0.30x)</u>  =35

                x

480+ x(35 - 0.30x<u>)</u>   = 35x

480 + 35x - 0.30x²   = 35x

480                            = 0.30x²

1,600                          = x²

40                               = x

The cost per student will be $35 if the number of students is 40; it will be less than $35 if the number of students is greater than 40.

8 0
3 years ago
To automate one of its production​ processes, the Milwaukee Corporation bought three flexible manufacturing cells at a price of
liq [111]

Answer:

$1,521,800

Explanation:

The computation of cost basis is shown below:-

Three cells cost price = 3 × $470,000

= $1,410,000

Combination of rate charges = $30,000 + $16,000 + $39,000 + $3,600

= $88,600

Wages of one foreman = wage per hour × weeks worked × hours per week

= $29 × 5 × 40

= $5,800

Wages of 4 foremen = 4 × $5,800

= $23,200

Three cells cost basis = Three cells cost price + Combination of rate charges + Wages of one foreman

= $1,410,000 + $88,600 + $23,200

= $1,521,800

4 0
3 years ago
The average rate of growth for slow-growth countries is around 2% per year, and for fast-growth, greater than 5% per year.Suppos
Alexxandr [17]

Answer:

It would take exactly 37 years

Explanation:

If we suppose that the economy starts at 10,000 billion dollars in 2020, the economy would only double by the year 2057, reaching a value of 20,399 billion dollars.

If we substract 2020 from 2057, we obtain 37, which is the number of years it took for this economy to double growing at a rate of 2% per year.

8 0
3 years ago
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