The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds <span>by </span>purchasing<span> new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:</span>
Ke<span> = (DIV 1 / Po) + g</span>
Ke<span> = cost of external equity</span>
DIV 1 = dividend to be paid next year
Po = market price of share
g = growth rate
In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.
<span>Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.</span>
Answer:
The consideration which will be dictated for Nathan's self efficiency is:
C. Verbal persuasion
Explanation:
Here, in the question it is mentioned that Nathan has been defending his first place ranking in his annual debate competition.
Now, just some minutes before his turn in the annual debate competition he gets nervous and he cannot remember his arguments related to the debate topic.
His teacher comes and talk to him, teaches him, reminds him of his theories and topics. Also motivates him and make him remind his special skills and shore up his demoralised confidence.
By listening all these things he gets motivated and delivers his best and defends his title at his very best.
So, the consideration which will be dictated for Nathan's self efficiency is:
C. Verbal persuasion
Answer:
A. the iso-quant line is tangent to the iso-cost line.
Explanation:
Cost minimization refers to the decrease in level of cost of production for certain specified level of production.
Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.
In this manner the company chooses the idle way of cost minimization.
Answer:
Half step
Explanation:
If you're talking about music, then a half step is smaller than a step.
