Answer:
The cost of equity is 9.91%
Explanation:
The constant growth model of the DDM is used to calculate the price of the share or the fair value per share based on a constant growth in dividends and the required rate of return which is also known as cost of equity.
Plugging in the available values in the formual we can calculate the cost of equity or the required rate of return.
73.59 = 4.57 / (r - 0.037)
73.59 * (r - 0.037) = 4.57
73.59r - 2.72283 = 4.57
73.59r = 4.57 + 2.72283
r = 7.29283 / 73.59
r = 0.0991 or 9.91%
It indicates signs of inflation in the economy
Answer:
Stronger
Explanation:
Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.
Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.
c) <em>Project management Software is only useful with a knowledgeable operator.</em>
Explanation:
Project management software are assisting software that need a pre-educated person to understand how it works, thus is the operator already has knowledge in project management it will assist him/her in making decisions and tracking progress thus useful.
Answer:
A $1,300 Credit to Paid in Capital in excess of par Common stock.
Explanation:
Common Stock value=Shares* Par value per share
Common Stock=100*$5
Common Stock=$500.
First we will prepare journal Entry:
Account Debit Credit
Organization Expense $1,800
Common Stock $500
Paid in Capital in excess $1,300
of par Common stock.
So Correct option is:
A $1,300 Credit to Paid in Capital in excess of par Common stock.
