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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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Your values are the things you hold dear in terms of how you conduct your life and career. Value indicates the significance of an action or thing in ethics and social sciences. Values include things like money, allegiance, independence, fairness, equality, justice, brotherhood, and friendship. Values include things like money, allegiance, independence, fairness, equality, justice, brotherhood, and friendship. In the social sciences, norms are a key notion. Norms are most frequently described as socially imposed laws or expectations. Norms can be prescriptive (encouraging good behavior, such as "be honest") or proscriptive (forbidding bad behavior, such as "do not cheat").

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Natasha_Volkova [10]

Answer:

B) coercive power.

Explanation:

There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.

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How to calculate the free cash flow of the firm (also referred to as the firm’s free cash flow) directly?
VashaNatasha [74]

Answer:

Explanation:

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In the short​ run, if the marginal product is at its​ maximum, then the A. average variable cost is at its minimum. B. average c
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nordsb [41]

Answer:

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Explanation:

Data provided in the question:

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since compounded monthly, number of periods n = 12

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