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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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1 year ago
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alukav5142 [94]

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Even if the others are wrong, they by themselves wouldn´t cause the trial balance to be out of balance, because in the end they have similar of the same amount of money in debit and credit, the only one that would make the trial balance to be out of balance would be A payment of $148 to a creditor was posted as a debit to Accounts Payable and a debit of $148 to Cash.  because as you can see it has both transactions in the debit side, and when doing trail balances for every debit there is always a credit with the same amount.

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3 years ago
The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complet
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450,000 units

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