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umka21 [38]
2 years ago
14

for $32.45 per share, and the firm expects its per-share dividend to be $2.35 in one year. Analysts project the firm’s growth ra

te to be constant at 5.72%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Pierce’s cost of internal equity?
Business
1 answer:
Serggg [28]2 years ago
8 0

Answer:

Cost of equity will be 12.96 %

Explanation:

We have given current price of the stock = $32.45

Expected dividend D_1=$2.35 in one year

Growth rate g=5.72%=0.0572

We have to find the cost of equity

Cost of equity is given by

Cost of equity =\frac{expected\ dividend}{current\ price\ of\ the \ stock}+growth\ rate=\frac{2.35}{32.45}+0.0572=0.1296 = 12.96 %

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3 years ago
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Answer:

166.25 hours

Explanation:

It take 25 hours if the production is going at 100% capacity, but the production is only going at 67%, therefore, 33% of the capacity is under utilized. It takes 8.25 more hours to finish the unit since the capacity is only at 67%. Finally, it takes 25+8.25 hours to finish a single product, hence taking 166.25 hours for 5 units.

We do this like this:

--> 25 ------ 100

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Hope this clears everything. Thankyou.

7 0
3 years ago
A resource is ______ if the number of firms that possess it is less than the number of firms required to reach a state of perfec
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5 0
2 years ago
Lagyan ng angkop na bilang ang
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3 years ago
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
krek1111 [17]

Answer:

$61

Explanation:

The computation of unit product cost for the month under absorption costing is shown below:-

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