D1 = $ 1.25
P0 = $ 27.50
g = 5 % = 0.05
F = 6 % = 0.06
Cost of equity, re = D1/ {P0 x (1- F)} + g
= $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05
= $ 1.25 / ($ 27.50 x 0.94) + 0.05
= $ 1.25 / 25.85 + 0.05
= 0.048356 + 0.05
= 0.098356 or 9.84 %
Answer:
The accrued interest on the note at December 31, 2019 is $206.25
Explanation:
Fashion Jewelers accepted a 5-month, 11% note for $7,500.
The amount of interest for 1 year = 11% x $7,500 = $825
The amount of interest for 1 month = $825/12 = $68.75
From October 1, 2019 to December 31, 2019, Fashion Jewelers has accepted the note for 3 months.
The accrued interest on the note at December 31, 2019 = $68.75 x 3 = $206.25
Answer:
D) not able to be calculated from the information given.
Explanation:
Consumer surplus is the difference between willingness to pay of a consumer and the price actually paid for a good or service.
The price paid by Smith is $205,000 but there's no information on the willingness to pay of Smith. Therefore, the consumer surplus can't be calculated.
I hope my answer helps you.
the industry a set of offerings belongs to.
