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valentinak56 [21]
3 years ago
7

Johnson Production Company paid a dividend yesterday of $3.50 per share. The dividend is expected to grow at a constant rate of

10% per year. The price of KayCee's common stock today is $40 per share. If KayCee decides to issue new common stock, flotation costs will equal $4.00 per share. KayCee's marginal tax rate is 35%. Based on the above information, the cost of retained earnings is what?
Business
1 answer:
Flauer [41]3 years ago
7 0

Answer:

0.19625 or 19.63%

Explanation:

Cost of retained earnings, r:

=\frac{D0\times(1+g)}{P0}+g

where,

D0 = Dividend paid yesterday

g = Expected growth rate of dividend

P0 = Current price of common stock

=\frac{3.50\times(1+0.1)}{40}+0.1

=\frac{3.85}{40}+0.1

      = 0.09625 + 0.1

      = 0.19625 or 19.63%

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Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance
NeTakaya

Answer: Please refer to Explanation.

Explanation:

First the descriptions of Constraints shall.be described first to better understand the the questions.

Bounds are constraints where the value of a variable is not allowed to exceed a level.

Limitations are Constraints whereby there is only a limited number of the variable in question.

Requirements are constraints that refer to the minimum levels of a variable required.

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If you need any clarification do comment. Cheers.

7 0
3 years ago
A marketing campaign makes unsubstantiated claims for the product it is promoting. Under ________, such advertisements would be
vredina [299]

Answer:

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In marketing, this section of the Act prevented companies to falsely promoting their products. They're required to truthfully listed all ingredients of the product and banned from making claim that are misleading to the consumers.

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gayaneshka [121]

Answer:

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TRUE OR FALSE FOR BRAINLIEST ANSWER, I'LL REPORT IF WRONG When one party substantially performs, the other can demand full perfo
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