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omeli [17]
3 years ago
7

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan'

s common stock currently sells for $25.50 per share; its last dividend was $2.20; and it will pay a $2.31 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity
Business
1 answer:
Leviafan [203]3 years ago
5 0

Answer:

14.06%

Explanation:

The computation of the cost of common equity using the DCF method is shown below:

Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate  

= [$2.31 ÷ $25.50] + 0.05

= 14.06%

We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come

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Tems11 [23]

Marketing web Design CaffeGustoso to focus on providing information about its products and new locations to promote its offline sales.

Explanation:

Video Marketing  includes  the process of posting digital videos on social website  in order to promote a product or a service.

The only product that Caffe Gustoso has is the coffee so the suggestion will be to create a series of entertaining videos to increase the consumer engagement with coffee and to provide information related to its location with the motive to boost online sale.

Thus we can say that the initiative will be to -Marketing web Design Caff eGustoso to focus on providing information about its products and new locations to promote its offline sales.

6 0
3 years ago
How many ink cartridges can you buy with 165 dollars if one cartridge costs 11 dollars
laiz [17]

Answer:

15

Explanation:

165 divided by 11 is 15. For any number over 10 that you divide by 11, you can ignore the middle number and take the digit in the hundreds place and the digit in the ones place.

7 0
3 years ago
Someone help me. i have no clue oml
Zielflug [23.3K]

Answer:

Get a dice and roll it.

Explanation:

8 0
2 years ago
The ending inventory of finished goods has a total cost of $11,600 and consists of 600 units. If the overhead applied to these g
Lunna [17]

Answer:

the Direct Labor Costs are  $5500

And Direct Materials are 2,250

Explanation:

Finished Goods has a total cost of $11,600

If the overhead applied to these goods is $3,850

Then the Direct Labor Costs are  $5500

And Direct Materials are 2,250

Using the cross product rule

$3850    : 70

x          :   100

x= $3850*100/70= $ 5500 are Direct LAbor Costs

Direct Materials= Finished Goods - overhead applied -Direct Labor Costs

  Direct Materials             =$11,600- $3,850- $5500

And Direct Materials are = $2,250

5 0
3 years ago
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders
ollegr [7]

Answer:

See below

Explanation:

1. Complete accrual basis income statement

Sales

($28,000 + $3,000)

$31,000

Less cost of goods sold

($13,000 + $2,000 - $3,000)

-$12,000

Operating expenses

($9,000 - $2,000)

-$7,000

Depreciation expenses

-$4,000

Income tax

($4,000 + $1,000)

-$5,000

Amortization expense

-$1,000

Gain on sale of equipment

$2,000

Net income

$4,000

2. Cash flow statement (Indirect)

Net income

$4,000

Adjustments;

Add depreciation

$4,000

Add write off intangibles

$1,000

Less gain on sale of equipment

-$2,000

Less increase in accounts receivables

-$3,000

Less increase in inventory

-$3,000

Add increase in accounts payable

$2,000

Less decrease in accrued payable

-$2,000

Add increase in deferred income tax payable

$1,000

Net cash from operations $2,000

7 0
2 years ago
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