Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
Answer:
E. Thompson memo
Explanation:
The name 'Thompson Memo' was used to honor the Deputy attorney General that first issued the memo in 2003. His name is Larry Thompson.
The memo was created to distinguished the line between the 'honest mistake' that the company might do and an actual wrongdoings that must be punished by law.
The memo consist of several criteria that future prosecutors can use to determine whether a company should be punished or not. Those criterias are:
- The nature/seriousness of the offense
- Whether they did a similar 'mistake in the past
- Whether the company admit the mistake by their own or whether it's exposed by other people
- Whether the company proposed a remedial action.
Hi thank you for using brainly.com
<span>The answer to this
question is “availability of substitutes“. The reduction
in the number of people riding trains is due to the fact that a new substitute,
automobile, is available in the market.</span>
<span>
Hope that helps!</span>
Asceticism in ancient Indian religion Served as a substitute for sacrificial practices as a means to placate and communicate with the gods.
Explanation:
Asceticism, the practice of rejecting physical or mental impulses to fulfill a moral purpose or goal. Asceticism is the form of self-discipline, self-denial or self-retention to accomplish a particular goal.
No other faith was at least lacking signs or certain characteristics of asceticism. This goal may be a tangible one, but it is metaphysical most often.
Those who follow ascetically practices are often viewed as noble and pursued in the pursuit of greater spirituality. Most ascetics claim that washing the body helps cleanse the spirit, thus gaining a greater link to the Divine or seeking inner peace.
