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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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Yakvenalex [24]

Answer:

A. 7.95%.

Explanation:

Calculate the expected rate of return for the investment as follows:

\begin{aligned}\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\&(\text { Probability } \times \text { Rate of retum }) \\=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\=& 0.06+0.05-0.003 \\=& 0.107

Calculate the standard deviation of the investment as follows:

\begin{aligned}\text { Standard deviation }=&\left\{\begin{array}{l} \text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)\end{array}\right.

=\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\=\sqrt{0.0007396+0.0000245+0.0018769} \\=\sqrt{0.002641} \\=0.05139066063011

7 0
3 years ago
g The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect
wariber [46]

Answer:

C. environmental scanning

Explanation:

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment.

Basically, the informations acquired through environmental scanning are used by the executive (top) management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

Furthermore, the internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.

On the other hand, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.

In conclusion, environmental scanning is a process which typically deals with gathering external and internal informations, forecasting relevant trends to an organization, competitive actions, and circumstances that will affect business operations in geographic areas of potential interest to an organization.

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3 years ago
The four step instructional training method introduced in World War I used the following steps​
Pani-rosa [81]

<u>Answer:</u>

<em>The four-step methods used the steps of the show, tell, do, and check  </em>

<em></em>

<u>Explanation:</u>

Job instruction training JIT is an orderly, quick, and viable strategy for showing your workers to carry out a responsibility accurately and securely. This strategy for preparing laborers through a straightforward breakdown of steps is honest and complete. By giving such preparing to your laborers, you could reduce the risk of damage or pass to a specialist, avert expensive hardware fixes, or keep away from lost work time.

When wanting to lead JIT, you should pick a powerful coach, recognize a fitting area and time for the preparation, and figure out what data to pass on to the laborers.

7 0
3 years ago
For a branded house strategy, the following is often essential: A. Increased shelf presence in retail store B. One product that
grigory [225]

For a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

<h3>What is branded house strategy?</h3>
  • A Branded House is a marketing approach in which multiple companies' products are sold under one name/branding umbrella.
  • If the master brand/company wants more control over the end product's production, distribution, and cost, this technique is ideal.
  • Apple is an example of a branded house.
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  • However, they are all clearly branded Apple and exploit the master brand's visual identity and spirit.
  • A Branded House strategy provides various benefits to businesses that provide different services or products under one brand, including Efficiency - a single marketing plan and brand code cover all offerings.
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Therefore, for a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

Know more about branded house strategy here:

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7 0
1 year ago
uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost for
OLga [1]

Answer:

$11,026 Favorable

Explanation:

The computation of the  spending variance for plane operating costs in November is shown below:

= Budgeted cost -  Actual cost

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= $11,026 Favorable

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