Answer:
Required rate of return is 14.99%
Explanation:
Given:
Price of stock (Po)= $23.57
Dividend (Do) = $2
Growth rate (g)= 6% or 0.06
Using dividend growth model to calculate required rate of return:
Substituting values in above formula, we get:
r = 
= 0.1499 or 14.99%
Therefore, required return of company's stock is 14.99%
Answer:
the mission of the federal deposit insurance corporation is to maintain and public confidence in the nation's financial system
Answer: open listing
Explanation:
Open listing simply refers to situation whereby a property owner uses several real estate agents when he or she wants to sell a property so that there will be many potential buyers.
In this situation, the agent who eventually brings the person who purchases the property will collects the commission assigned to the property.
Answer:
$210,000
Explanation:
Cost of Borrowings (Interest expense) = Amount of Borrowings * Rate of Interest = $3,000,000 * 10% = $300,000
Tax on Borrowings = Cost of Borrowings * Rate of tax = $300,000 * 30% = $90,000
Net Cost of Borrowings = Cost of Borrowings - Tax on Borrowings
Net Cost of Borrowings = $300,000 - $90,000
Net Cost of Borrowings = $210,000
So, the annual net cash cost of this borrowing if the income tax rate is 30% is $210,000.
