Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%
Answer: Institutional
Explanation:
The institutional advertising helps to promote an institutional, organization, business or the industry related advertisement.
The institutional advertisement is also known as corporate advertising that mainly focus on the business ideas and the benefits.
It helps to enhance the reputation of an organization and also try to build a good image in the market. Therefore, Institutional advertising is the correct answer.
Answer:
14.6 percent
Explanation:
Data provided in the question
The average return of large-company stock = 12.14 percent
The average risk-free rate of return = 2.49 percent
The average return of small-company stock = 17.09 percent
By considering the above information, the risk premium is
= Average return of small-company stock - Average risk-free rate of return
= 17.09 percent - 2.49 percent
= 14.6 percent
This is the answer but the same is not provided in the given options
We simply deduct the risk-free rate of return from the market return so that the risk premium could come
Answer: $18
Explanation:
From the question, we are informed that On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance.
The accrued interest recorded for this note for the year ended December 31, 2019 goes thus:
The value of notes receivable is $1080, then the interest for 5 months will be:
= ($1080 × 10% ×5)/100 × 12
= $54000/1200
= $45
We are further told that the interest accrued from November 1, 2019 to December 31, 2019. This means that it was for 2 months. The accrued interest will now be:
= $45 × 2/5
= $90/5
= $18
