Answer:
Please find the detailed answer as follows:
Explanation:
1) Given D1 = $ 2.05
Constant growth rate, g= 6.5% per year
Current Price of the stock, Ps = $ 28 per share
Let the cost of capital be "k'
Then , 28 = D1*(1+g)/(k - 6.5%)
28 = 2.05*(1+6.5%)/ (k - 6.5%)
k = 14%
2) Dividend yield = (Dividend /Price)
As the dividends are growing at constant rate, the Stock price is expected to be Div(1+g)/(k-g) . Yield = (k-g)/(1+g), as g and k remains constant.
Thus Answer is It will stay the same.
Answer:
The correct answer is letter "A": Finished goods inventory.
Explanation:
Finished goods inventory refers to those products that have reached their maximum level of completion and are stored in the manufacturing company inventory waiting for retailers or end-consumers to demand them. Finished goods are also called <em>final goods</em>.
Answer:
appropriate cost of capital to evaluate the business is 8%
Explanation:
given data
cost of equity capital = 12%
revenue from software = 50%
cost of equity capital = 8 %
to find out
the appropriate cost of capital
solution
we know that
Cost of capital = cost of capital in same industry or cost of capital in the related division
so here cost of capital equal to business is 8% so that Cost of capital will be 8%
hence the appropriate cost of capital to evaluate the business is 8%
Answer:
The credit period is the number of days that a customer is allowed to wait before paying an invoice
Explanation:
This indicates the amount of working capital that a business is willing to invest in its accounts to generate sales
Answer:
C,)The reciprocity norm
Explanation:
From the question, we are informed about Sharon who is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secretary gave her an expensive bottle of perfume. In this case, the best yet that identifies the source of Sharon's feelings is reciprocity norm.
Reciprocity norm can be regarded as rule of human interaction which stressed that action of a person needs to be reciprocated by another people. In simple term, reciprocity norm explain that when a particular person is been given a gift by another, the gift must be related by the person, this gift could take different number of forms. Reciprocity can be explained better as ways and how particular positive actions generate more positive actions, in the same way that negative actions generate or give room for more negative actions