Answer:
The cost of equity is 12.49 percent
Explanation:
The price per share of a company whose dividends are expected to grow at a constant rate can be calculated using the constant growth model of the DMM. The DDM bases the price of a stock on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / r - g
Where,
- D1 is the dividend expected for the next period
- r is the cost of equity
- g is the growth rate in dividends
As we already know the P0 which is price today, the D1 and the growth rate in dividends (g), we can plug in the values of these variables in the formula to calculate the cost of equity (r)
100.81 = 8.76 / (r - 0.038)
100.81 * (r - 0.038) = 8.76
100.81r - 3.83078 = 8.76
100.81r = 8.76 + 3.83078
r = 12.59078 / 100.81
r = 0.12489 or 12.489% rounded off to 12.49%
Collision insurance cover damage
Answer:
Purchase decision process
Explanation:
A purchase decision process is defined as the thought process that goes into buying a certain product. This thought process include the buyer identifying a need, creating options, seeing different brands and then finally buying the product.
Purchase decision could be either minor or major. Purchasing things like tea, toothpaste, etc require minor decision processes while buying a house or piece of land involves major decision processes.
As in the question, Becky now has to under purchase decision process as to buying soccer cleats for her daughter. This decision will involve buying a brand that won't shrink as a result of weather changes or wear out easily, etc
I hope this helps.
Answer:
The amount that the company should include in the current liability section of the balance sheet is $16,000
Explanation:
The short-term debt that the company is refinancing with long-term debt is non-current and deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.
Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000
