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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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Why is Earned Value a very powerful tool? Answer: It combines the cost, scope, and ____________ as an integrated tool to calcula
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1) Time
2) cost analysis or performance measurement.

Explanation


Earned value — it integrates cost, time and the work done (or scope) and can be used to forecast future performance and project completion dates and costs...
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2 years ago
2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth
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The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.

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To learn more about inflation, please check: brainly.com/question/18072639

4 0
2 years ago
signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. A
Tems11 [23]

Answer:

Express.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

An express contract can be defined as a type of contract in which the terms binding on the two parties are either explicitly stated in writing or orally, or a combination of both.

In this scenario, Angelica signed a contract to work for Acme Global. The contract described the terms of her employment, including her pay and benefits. Thus, Angelica signed an express contract because the exchange of promise is stated explicitly in writing and it's a legally binding agreement on the two parties (employer and the employee).

4 0
2 years ago
Bottle Top, Inc. recently announced they will pay their first annual dividend next year in the amount of $0.75 a share. The divi
Korolek [52]

Answer:

$12.50

Explanation:

Data provided in the question

Annual dividend next year = $0.75

Growth rate = 4%

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So by considering the above information, the price of the share is

= Next year dividend ÷ (Required rate of return - growth rate)

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= $12.50

Hence we considered all the information which is given in the question

4 0
3 years ago
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