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Tom [10]
3 years ago
5

to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%.

What is the cost of equity raised by selling new common stock? a. 13.12% b. 11.90% c. 10.77% d. 12.50% e. 11.33%
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

11.33%

Explanation:

The dividend valuation model will be used here to calculate the cost of equity raised which can be calculated using the following formula:

r = D1 / (Po - F)           + g

Here D1, Po, F and g are given in the question so by putting the values in the equation, we have

r = $1.75 / ($42.5 - 5% of Po)      +  7%

r = 11.33%

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The companies that measure the program audiences of TV and radio stations for advertisers and broadcasters are known as
dusya [7]

Answer:

Rating Services

Explanation:

Rating Services are forms of media infographic services that assess and calculate the program audiences of Television and radio stations for various advertisers and broadcasters by selecting a representative sample of the market and then provide detailed data on the quantity and qualities of the viewers or listeners.

Hence, the right answer is Rating Services.

4 0
3 years ago
Which of the following is true about conflicts of interest?
Vedmedyk [2.9K]

Answer: Option B

Explanation: In simple words, conflict of interest refers to a situation when a person have the power to make a certain decision from which he or she gets to have some special benefit.

Therefore, conflict of interest always results in the scope bias. As the individual in the power can use his or her position that can lead to benefit of him or loss of others or both.

Hence from the above we can conclude that the correct option is B.

5 0
3 years ago
This problem has been solved! See the answer On January 1, Helmut pays $2,000 for a 10% capital, profits, and loss interest in a
Alinara [238K]

Answer:

Helmut's basis at year-end is $3,900.

Explanation:

Beginning Basis  = $2,000

Add: January 1 Liabilities at the rate of 10% = $20,000 × 10% = $2,000

Add: Increase in liabilities by the rate of 10% = $5,000 × 10% = $500

Less: Loss incurred at the rate of  10%  = ($6,000 × 10%) = $600

Basis at the end of the year = $2,000 + $2,000 + $500 - $600

Basis at the end of the year = $3,900.

4 0
3 years ago
At December 31, 2021 and 2020, P Co. had 58,000 shares of common stock and 5,800 shares of 5%, $100 par value cumulative preferr
Finger [1]

Answer:

$10.19 per share

Explanation:

With regards to the above, the basic earnings per common share is seen below;

Preferred dividend = Shares × Par value × Shares percentage

= 5,800 × $100 × 5%

= $29,000

So, basic earning per share = (Net income - Preferred dividend) ÷ Common shares

= ($620,000 - $29,000) ÷ 58,000

= $10.19 per share

Therefore, for 2021, basic earnings per common share amounted to $10.19

6 0
3 years ago
The balance sheet of ABC reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The r
zimovet [89]

Answer:

ABC net income for the year is $42,500

Explanation:

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = Beginning total assets + Ending total assets ÷ 2

= ($400,000 + $450,000) ÷ 2

= $425,000

Return on assets = 10%

Therefore,

Net income ÷ Average total assets = Return on assets

Net income = Return on assets × Average total assets

Net income = 0.1 × Average total assets

= $425,000 × 0.1

= $42,500

7 0
3 years ago
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