Answer:
7.83%
Explanation:
This is calculated by using the Gordon growth model (GGM) formula as follows: P = d / (r - g) ……………………………………… (1)
Where;
P = market price of the stock = $24.09
d = next year annual dividend = $1.26 r = cost of equity = ?
g = dividend growth rate = 2.6%, or 0.026
Substituting the values into equation and solve for r, we have:
24.09 = 1.26 / (r - 0.026)
24.09 (r - 0.026) = 1.26
24.09r - 0.62634 = 1.26
24.09r = 1.26 + 0.62634
24.09r = 1.88634
r = 1.88634 / 24.09
r = 0.0783038605230386, or 7.83038605230386%
Rounding to 2 decimal places. we have:
r = 7.83%
Therefore, the correct option is 7.83 percent.
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Consultancy involves asking important question and guidelines form an expert.
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Learn more on survey below
brainly.com/question/196770
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Answer:
$165,975
Explanation:
The computation of sales budgeted is shown below:-
For computing the Sales budgeted for February first we need to compute the January and February units.
January = 10,000 + (3% × 10,000)
= 10,000 + 300
= 10,300
February = 10,000 + (3% × 10,300)
= 10,000 + 309
= 10,309
Sales budgeted for February = For February × Each electric staplers
= 10,309 × $16.10
= $165,975
So, for computing the Sales budgeted for February we simply applied the above formula. The option is not available.
