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goldenfox [79]
3 years ago
5

Cullumber Wok Co. is expected to pay a dividend of $1.80 one year from today on its common shares. That dividend is expected to

increase by 5.00 percent every year thereafter. If the price of Cullumber common stock is $20.00, what is the cost of its common equity capital?
A. Cost of common equity
%
Business
1 answer:
const2013 [10]3 years ago
6 0

Answer:

14.00%

Explanation:

Given that,

Expected Dividend = $1.80

Expected Growth Rate  of dividend = 5%

Price of Cullumber common stock = $20.00

Cost of Common Equity = (Expected Dividend ÷ Current Price ) + Growth Rate

                                       = (1.80 ÷ 20) + 5%

                                       = 0.09 + 5%

                                       = 14.00%

Therefore, the cost of its common equity capital is 14%.

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Answer:

The correct answer is letter "D": rationalization.

Explanation:

Rationalization refers to the restructuring of a company in terms of changing its operational processes, strategy, or corporate size on an attempt of increasing its efficiency. That stage is reached by reducing costs and increasing profits. The introduction of a new product could push a firm to rationalize whether to expand or cut part of its operations.

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3 years ago
How do trade-offs decided by corporations and government impact our lives?
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Explanation:

Trade offs are something in which there are two things and we choose one of them according to our own preference or need. This is and should be our personal decision, but when Corporations and Governments decide on what to choose between two things, there would might be a negative impact on someone's life. He might feel controlled by the corporations and governments. For example, if corporations of CNG decides with the government that it is better for consumers to use CNG than Petrol in their cars, and lowers taxes on CNG and encourage consumers to shift towards CNG, then this trade off will have an impact of being controlled by the big giants. The choice should be of consumer's. The consumer should be the one who will trade off between things who are preferable for him.

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2 years ago
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Answer:

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D

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I believe your answer is:

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