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vivado [14]
3 years ago
12

Estimating Components of both WACC and DDM Analysts estimate the cost of debt capital for Abbott Laboratories (NYSE: ABT) is 2.1

3% and that its cost of equity capital is 4.1%. Assume that ABT's marginal tax rate is 36%, the risk-free rate is 5.3%, the market risk premium is 5.7%, the ABT market price is $47.73 per common share, and its dividends are $1.26 per common share.
(a) Compute ABT's average borrowing rate and its market beta.
(b) Assume that its dividends continue at the current level in perpetuity.
Business
1 answer:
NARA [144]3 years ago
8 0

Answer:

a. Average borrowing rate= debt cost=2.13

Beta = 4.1-5.3/5.7= -0.2105

b.

Equity cost =dividend /price=1.26/47.73=0.0264= 2.64%

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Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rende
deff fn [24]

Answer:

REVENUES

Explanation:

Revenue, often referred to as sales, are the inflows or other enhancements of assets of an entity or settlements of its liabilities (Income) received from the entity's ongoing operations. Includes discounts and deductions for returned merchandise. It is the first income on a company's Income Statement from which all charges, costs, and expenses are subtracted to arrive at net income.

4 0
3 years ago
GIVING BRAINLIEST <br> hi!.... so i have a question for all of you... how do you make money?
Nutka1998 [239]
Well I’m young so I make money through part time jobs such as chick fila or some other restaurant that pays
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3 years ago
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Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. There were no
mylen [45]

Answer:

True

Explanation:

The net cash flow for the year can be calculated using the following equation:

net cash flow = net income + accounts payable - accounts receivable

net cash flow = $29,500 + $5,400 - $2,500 = $32,400

We have to subtract accounts payable since they were included in the net income but the cash has not been received yet.  

4 0
3 years ago
The Changing Workforce The composition of the modern labor force is changing rapidly. Increasing diversity in race, ethnicity, a
Ipatiy [6.2K]

Answer:

e. more women are in the paid labor force than in the past

Explanation:

The labor force is also known as the work force. It is defined as the labor pool that is either in the employment or the unemployed. It generally describes those people who are working for an organization.

The workforce today is changing and is different from the early days. The modern labor force is rapidly changing. There is a huge challenge for the HR professionals as there is increase in the diversity of race, gender, ethnicity , age distribution and the requirement of skills. Now-a-days more and more women are engaged in the paid labor force as compared to the early days. More women are learned and skilled and work under a paid labor force. They have shown success in many fields and are sometimes better performer than men.

Thus now more women are in the paid labor force when compared to the past.

6 0
3 years ago
You transferred $6,456 from your checking account to your savings account. The balance in savings was $7,870 before the transfer
Viefleur [7K]

Answer:45 percent

Explanation:

saving account before transfer=$7870

Saving account after transfer=7870+6456=14326

Percentage increase=(14326-7870)/14326 x 100

Percentage increase=6456/14326 x 100

Percentage increase=0.45 x 100

Percentage increase=45

3 0
4 years ago
Read 2 more answers
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