Answer:
Cost of retained earnings
= <u>Do(1 + g)</u> + g
Po
= $1.26<u>(1 + 0.06)</u> + 0.06
$40
= 0.0333 + 0.06
= 0.0933 = 9.33%
Explanation:
Cost of retained earnings is equal to current dividend paid subject to growth rate divided by the current market price of common stock plus growth rate
It's called Closing Costs
A bond issued by a new chain of Brazilian-style restaurants pays highest interest rate.
Option D
<u>Explanation:
</u>
A bond is an expression of the bond issuer's indebtedness for the holders of securities. The interest rate is the amount that the lender pays for his capital need. The largest factor is the sum of money loaned. The banks therefore pay you a deposit interest rate. You borrow the money from you.
Though they may be highly competitive, their interest rates are not equivalent. If a bank assumes that the debt is less likely, it pays higher interest rates. Therefore, banks will always offer revolving loans such as credit cards, a higher interest rate.
Such types of points are more difficult to manage. Financial institutions also charge people they think to be dangerous higher rates. The higher your ranking, the smaller your interest rate.
Answer:
The cash payment is included in investing activity.
Explanation:
Items included in investing activity refers to assets that are used by the company, such as land, equipments and building.
A mortgage note payable is an example of a financing activity. Here the company has secured financing for it's acquisition by way of mortgage.
Answer:
The share of the stock is worth $66.92 today
Explanation:
PV7 = D8 / r
PV7 = 12 / 0.095
PV7 = $126.3157894737
Hence, PV0 = 126.3157894737*(1 + 0.095)^7
PV0 = 126.3157894737*(1.095)^7
PV0 = 126.3157894737*1.887551
PV0 = $66.9204428895
PV0 = $66.92
Thus, the share of the stock is worth $66.92 today
