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dusya [7]
3 years ago
6

"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde

finitely. Assuming Parker's most recent dividend was $5.50, what is the required rate of return on Parker's stock
Business
1 answer:
8_murik_8 [283]3 years ago
6 0

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

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Elena L [17]

Answer:

B) upward communication

Explanation:

Upward Communication -

It refers to the flow of information from the lower level to the higher level in the company, is referred to as upward communication.

The method helps to pull out thought and innovative technique from all the employees working in the company , and is used for the betterment of the company.

It helps to have a healthy conversation and decision making process, which helps the company to grow.

Hence, from the question,

The company Munchkin takes idea from all the employees and tries to implement it into the company, thereby showcasing the method of upward communication.

3 0
4 years ago
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents
Fynjy0 [20]

Answer:

in roms         425

in dollars 24,650

Explanation:

Operating fixed cost

salaries                    5,500

utilities                      1,200

depreciation            1,300

maintenance           <u>4,325</u>

Total Fixed cost     12,325

Contribution per room:

$58 per night

-$10 maid

-$19 other

Contribution = 29

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

12,325/29 = 425 rooms

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

29/58 = 0.5

12,325/0.5 = 24,650

Also can be done:

BEPunits x Price per unit

425 x 58 = 24,650

4 0
4 years ago
Key practices in the partnering approach to managing contracted relationships include ch12 Select one:_______a. Structured commu
slava [35]

Answer:

The correct answer is access to each other's organisational resources

Explanation:

There are numerous aspects of partnering approach in managing relationship. The significant advantage of this approach is that it helps to create an environment in which two parties can work along and start a healthy relationship where they can easily access organisational resources of each other. This approach helps firms and organisations to grow.

3 0
4 years ago
If the supply of a product increases, thena. more will be purchased at the same priceb. the price of the product must have decli
enyata [817]

Answer: The price of the product must have declined.

Explanation: If the supply for a product increases the supply curve shifts down to the right. With demand for the product unchanged, this will lead to a decline in the price of the product and an increase in quantity.

As can be seen in the figure, Supply curve shifts from S0 to S1, and price falls from P0 to P1.

8 0
3 years ago
Why do economists love graphs?
Fofino [41]

Answer:

Graphs show the relationship between 2 variables. A graph is used to condense numeral information making patterns clearer. Using graphs makes data readable for economists.

6 0
3 years ago
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