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Yuliya22 [10]
4 years ago
9

Asian Trading Company paid a dividend yesterday of $4 per share. The dividend is expected to grow at a constant rate of 7% per y

ear. The price of Asian Trading Company's stock today is $25 per share. If Asian Trading Company decides to issue new common stock, flotation costs will equal $3 per share. Asian Trading Company's marginal tax rate is 35%. Based on the above information, the cost of new common stock is
Business
1 answer:
zalisa [80]4 years ago
6 0

Answer:

$26.45

Explanation:

The computation of the cost of the new common stock is shown below:

Cost of the new common stock is

= Current year dividend ÷ (Price - flotation cost) + growth rate

where,

Current year dividend is

= $4 × 1.07

= $4.28

And, the price $25 and the flotation cost is $3

And, the growth rate is 7%

So the cost of new common stock is

= ($4.28) ÷ ($22) + 0.07

= $26.45

We simply applied the above formula

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Possession utility is most closely related to which part of the marketing mix plz help​
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Answer:

price

Explanation:

Possession utility is the value customers have while buying a product and they have the choice to use the product for the purpose it was made for or finding a new way to use the product.

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3 years ago
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Status quo.

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7 0
3 years ago
TopChop sells hairstyling franchises. TopChop receives $56,000 from a new franchisee for providing initial training, equipment a
valentina_108 [34]

Answer:

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Revenue is calculated as follows.

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