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4 years ago

15

1. Assuming Maria does not really care about her parents’ approval and ignores their assignment, will she be able to receive a c

redit card without their help? Would your answer change if Maria was a graduating senior?

1 answer:

Amanda [17]4 years ago

6 0

Answer:

Yes she will get the credit card easily.

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Suppose Stark Ltd. just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2

Sergeu [11.5K]

Answer:

Ans, The cost of the company’s cost of equity capital using the arithmetic average growth rate is 10.63% and using the geometric average of the growth rate is 10.60%

Explanation:

Hi, this is the equation we need to solve in order to find the company’s cost of equity capital.

$r=\frac{Dividend}{Price} +g$

As you can see, we almost have everything, the only problem here is "g", its growth rate, so let´s find "g" using the arithmetic average, but first, we need to find the growth rate for every period, the formula is

$g=\frac{(FinalDividend-PastDividend}{PastDividend}$

Therefore, we need to find 4 g´s, let´s call them g1, g2, g3 and g4:

$g1=\frac{(1.98-1.80)}{1.80} =0.10$

$g2=\frac{(2.05-1.98)}{1.98} =0.0354$

$g3=\frac{(2.16-2.05)}{2.05} =0.0537$

$g4=\frac{(2.24-2.16)}{2.16} =0.0370$

So the average is:

$Average(g)=\frac{0.10+0.0354+0.0537+0.0370}{4} =0.0565$

Therefore, the average growth rate is 5.65%

And the company’s cost of equity is:

$r=\frac{2.24}{45} +0.0565=0.1063$

so, if the average growth rate is found by using the arithmetic average is 10.63%.

Now, let´s find the geometric average

$g(average)=\sqrt[4]{(1+0.10)(1+0.0354)(1+0.0537)(1+0.0370)} -1=0.0562$

therefore, using the geometric average to find the growth rate, the company’s cost of equity is:

$r=\frac{2.24}{45} +0.0562=0.1060$

using the geometric average, the company’s cost of equity is 10.60%

Best of luck.

7 0

3 years ago

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel h

aleksandrvk [35]

Answer:

46,000 ending cash balance

Explanation:

50,000 Ariel Investment

+ 10,000 cash revenues

- 14,000 cash expenses

46,000 ending cash balance

(assuming no other transaction impacted the cash account)

When you are asked for a ending value, you should identify first, if there is a beginning value, something which start the balance of the account.

Like inventory in hand, supplies in hand, equipment, accounts payable

Then you have to figure out which trasnaction incresae the balance

and which decrease it.

<u>Finally you put them together:</u>

<em>beginning + increase - decrease = ending</em>

4 0

3 years ago

the government believes that the equilibrium price is too low and tries to help almond growers by settinga price floor at Pf. Wh

musickatia [10]

Answer: D) B

Explanation:

The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.

After the Price Floor was introduced however, area B has become a Producer Surplus.

7 0

4 years ago

Suppose that the price of basketball tickets at your college is determined by market forces. currently, the demand and supply sc

hram777 [196]

The answer is <span>10,000</span>

7 0

3 years ago

Zeto Bank requires its customers to provide their customer identification number, their respective passwords, and a one-time pas

olya-2409 [2.1K]

Answer:

the correct answer is "Mobile Banking".

Explanation:

Mobile banking is doing banking and related financial activities such as money deposits, withdrawals, bill payments, issuing standing orders, checking the balance amount and opening/closing accounts through the internet and the mobile devices.

Mobile banking is more popularized through the launch of new applications in the iOS and Android platforms.

Mobile banking has made it easier for the customers to do banking related activities and it has made it easier for the banks to process more transactions without increasing their number of employees.

7 0

4 years ago