Answer:
The cost of equity is 12.49 percent
Explanation:
The price per share of a company whose dividends are expected to grow at a constant rate can be calculated using the constant growth model of the DMM. The DDM bases the price of a stock on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / r - g
Where,
- D1 is the dividend expected for the next period
- r is the cost of equity
- g is the growth rate in dividends
As we already know the P0 which is price today, the D1 and the growth rate in dividends (g), we can plug in the values of these variables in the formula to calculate the cost of equity (r)
100.81 = 8.76 / (r - 0.038)
100.81 * (r - 0.038) = 8.76
100.81r - 3.83078 = 8.76
100.81r = 8.76 + 3.83078
r = 12.59078 / 100.81
r = 0.12489 or 12.489% rounded off to 12.49%
Answer:
The first one is Business communication skills
The second one is computer skills
The third one is leadership skills
The fourth one is analytical skills
Explanation:
Answer:
Production department $440,000
Sales department $143,000
Explanation:
The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.
Hence,
Cost allocated to the production department
= 40/(40 + 13) × $583,000
= 40/53 × $583,000
= $440,000
Cost allocated to the sales department
= 13/(40 + 13) × $583,000
= 13/53 × $583,000
= $143,000
Answer:
Lease Equipment $150,000
BUY EQUIPMENT$134,700
Differential Effects-$15,300
The company should choose BUY EQUIPMENT which is Alternative 2
Explanation:
Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease Equipment (Alternative 1); Buy Equipment
(Alternative 2); Differential Effects (Alternative 2)
Costs:
Purchase price $0 $120,000 $120,000
Freight and installation $0 $1,500 $1,500
Repair and maintenance (6 years) $0 $13,200.$13,200
($2,200*6=$13,200)
Lease (6 years) $150,000 $0 -$150,000
($25,000*6)
Total costs $150,000 $134,700 -$15,300
Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2
Answer:
E
Explanation:
Cognitive dissonance is sometimes referred to as buyer's regret and often arises when consumers begin to wonder if they made the right purchase decision. This happens during the post-purchase evaluation stage.
