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Amanda [17]
2 years ago
7

IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6​% a year. The price of IBM is $90 per sha

re. What is​ IBM's cost of equity​ capital?
Business
1 answer:
Elena-2011 [213]2 years ago
7 0

Answer:

Cost of equity = 8.22%

Explanation:

Cost of equity = Dividend per share /current market value + growth rate of dividend  

Cost of equity = 2/90 + 6%

Cost of equity = 0.0222 + 6%

Cost of equity =0.0222 + 0.06

Cost of equity = 0.0822

Cost of equity = 8.22%

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You wish to take an Excel course. You may enroll at one within your school or you may take a community class at the local librar
Paraphin [41]

Answer:

The chosen option (considering enrollment costs and opportunity cost) is:

b) College course.

Explanation:

a) Data and Calculations:

Costs/Benefits

                           College Course          Community Course

Cost                              $2,600                         $1,390

Opportunity costs         -2,080                          2,080

Net costs                         $520                        $3,470

Distance to course      0.40 miles                    16 miles

                                  (walking distance)      (driving distance)

Timing of course          Weekday                     Weekend

Number of meetings    16                                 8

b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost.  With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred.  These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.

5 0
3 years ago
The italian dynamic markings traditionally used to indicate very soft, soft, and very loud are respectively _____
tino4ka555 [31]
Music is the worldwide language, but the widely held of Western classical music has been written by composers with markings in Italian. So, in order to follow the composer’s notated musical instructions, a player must embrace a few Italian words into their dictionary, along with their symbols and meanings.So in this case, Pianissimo means very soft which is denoted by pp, Piano means soft which is denoted by p and Fortissimo means very loud which is denoted by ff.
4 0
3 years ago
In the Republic of Sildavia, a market basket of goods and services cost $130 in 2009, $140 in 2010, and $160 in 2011. Based on t
yarga [219]

Answer:

23.07%

Explanation:

For computing the inflation rate first we have to determine the price index for 2011 which is shown below:

Price index for 2011 is

= (market basket of goods and services cost in year 2011) ÷ (market basket of goods and services cost in year 2009) × 100

= ($160) ÷ ($130) × 100

= 123.07%

Now the inflation rate is

= (Price index for 2011 - price index for 2009) ÷ (price index for 2009) × 100

= (123.07 - 100) ÷ (100) × 100

= 23.07%

And, the price index for 2009 is

= ($130) ÷ ($130) × 100

= 100%

4 0
3 years ago
In an investment center, the manager has the responsibility for and the authority to make decisions that affect a. both costs an
yaroslaw [1]

Answer:

The answer is B.) Cost, revenue, and assets invested in the center

Explanation:

An investment center is a responsibility center in which the department manager is responsible for costs, revenues and assets for the department.

An investment center is also a business unit in a firm that can utilize capital to contribute directly to a company's profitability.

Examples of departments that make up the cost center are the human resource and marketing departments, units that falls under a profit center include the manufacturing and sales department.

6 0
2 years ago
Which is NOT a money management skill discussed in the reading material?
aleksandrvk [35]

Answer:

Option B. Managing your time in a healthy manner

Explanation:

The reason is that the money management moves around the money and managing time has no association with the money savings or money generation or money spending. So the things that matter while managing the flow includes the estimation of cash outflow and inflow in the coming period, budgeting the cash flow, least cash amount required to tackle emergent issues and other issues like opening saving account, short term investment, etc.

4 0
3 years ago
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