Answer:
i=4.84%
Explanation:
the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:
where value is the current stock price, i is the dividend yield and k is the growth rate, so applying to this particular case we have
k=3.4/91
k=3.74%
and solving i for the previous formula:
Answer:
The answer is D. All of the above
Explanation:
The Capital structure of most companies comprise equity, debt and/or preference shares. All these that made up capital structure has cost or let's say return. We have cost of capital, cost of debt, cost of preference shares.
Therefore, weighted average cost of capital is average of the cost of each financing component(cost of capital, cost of debt and cost of preference shares), weighted by the proportion of each component
All the options relates to the weighted average cost of capital(WACC).
Answer:
The correct answer is prospecting.
Explanation:
The organized search that is based on the use of techniques specially designed to find potential clients for a given business is known as commercial prospecting. This is a fundamental point to maximize the success of a company and attract new investors.
Although commercial prospecting can significantly increase the performance of a company and move it from an acceptable activity to occupy an important position in the market, many entrepreneurs ignore this step or simplify it, thus losing endless opportunities for gold from make your products and services the most sought after.
Answer:
The payback period of the investment is 6.5 years
Explanation:
1. In order to calculate the payback period of the investment we would have to make the following calculation:
payback period of the investment=Year before full recovery+(Unrecovered cost at the start/cash flow during the year
)
payback period of the investment=6+ ($23,000−$20,500)
/$5,000
payback period of the investment=6.5 Years
The payback period of the investment is 6.5 years
Answer:
(a)overstated
(b)overstated
(c)no effect
Explanation:
(a) As there is an expense account (utilities expense) which, is not included in the income statement, result for the year will be higher than if was.
(b)The revenues account will be oaky. But, the total expenses will be lower, as there are cost of the period which are not included.
So the Net incoem will be higher than a correct income as their expenses do not include this utilities expense
(c) The balance sheet will have no effect in the total Asset or Total Liaiblities+SE but, it is a change in the composition.
The income (reained earnings) should be lower as the income will be lower and a liability will be create (utilities payable) to fill this so:
with the mistake:
liab 0 equity (+400)
ammending the mistake
liab 400 equity 0
the net effect is zero.
It will decrease equity and increase liability, but the su of both will be the same
