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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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Answer:

B. her reservation price was at least $400.

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In the demand side, this price represents the higher price that the buyer is willing to pay to purchase the goods whereas, on the supply side, this price represents the lower price that the seller is willing to sell the goods.  

In this question, the Shelly purchase a leather purse for $400 which means the minimum price would be $400

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2 years ago
Using a minus (-) sign before a keyword search indicates that A. you're adding a "+" and then a "-"to refine the search. B. it's
Studentka2010 [4]

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Answer:

market price of bonds = $219,597.35

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2 years ago
Your older and wiser sibling has offered to loan you some much needed money to help cover textbook expenses this semester. Since
masya89 [10]

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80 years

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2 years ago
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