1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ArbitrLikvidat [17]
3 years ago
12

Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividen

d by 3.10 percent per year into the foreseeable future and the current price of Oriole’s common shares is $19.65, what is the cost of common stock for Oriole? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.)
Business
1 answer:
Butoxors [25]3 years ago
4 0

Answer:

Cost of common stock is 12.02%

Explanation:

The cost of common stock can be computed from share price formula given below:

share price=do*(1+g)/r-g

do is the dividend just paid which is $1.70

g is the expected dividend growth per year which is 3.10%

r is the cost of common stock which is unknown

share price is $19.65

by changing the subject of the formula:

r=do*(1+g)/share price+g

r=1.70*(1+3.10%)/19.65+3.10%

r=1.7527/19.65+3.10%

r=0.0892+3.10%=12.02%

The company's cost of capital which is also the cost of common stock is 12.02%

You might be interested in
discuss the rationale of organizing an industrial strike in resolving employee dispute with the state,focusing on the detrimenta
Gennadij [26K]

Answer: The answer is given below

Explanation:

Strike is the refusal to work which is typically organized by body of employees as a method of protesting in an attempt to get a pay rise or other concessions from the employer.

Strike can be as a result of demand for wages or salary increment, better working conditions, better treatment at workplace and non-discrimination, towards employees.

Strikes can bring about potential benefits such as better working conditions, increase in pay, improved labor productivity, increase in work morale, and lower absenteeism. Itcsn also bring about economic costs to the society. Strikes results in negative impacts on employees, employers, consumers, stakeholders, the government, and the whole economy.

During strikes, there are less goods available for consumers, decrease in revenue on the part of employers, idle employees, and the economy is also affected badly.

6 0
3 years ago
Give like the LATEST NEW PLAYLIST "Sad Boy Intro" if you want to heard (Unrelease) playlist and listen to "A love Letter Heart B
Wewaii [24]

Answer:

its in my queue

Explanation:

but are you actually good?

4 0
3 years ago
Read 2 more answers
Ten-year-old sarah and 5-year-old haley were making a special birthday card for their grandmother. by patiently showing haley ho
Helga [31]

Answer:

This is true

Explanation:

Sarah illustrated scaffolding for Haley by supporting her through learning when putting lace around the card's edge.

4 0
3 years ago
Americans' core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxur
Vlad1618 [11]

Answer: Option (C)

Explanation:

Sociological factors are referred to as or known as elements or factors of the society that tends to radiate negative and positive influence which cause a change in function, structure, elements, and orientation. Sociology tends to mostly study society in regards with its elements, structure, and their development which mostly includes numerous factors such as people and the population, ethnicity, age, gender, religion, view , culture, and etc.

8 0
3 years ago
Casey Communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. Thi
SVEN [57.7K]

Answer:

The company's current ratio increased.

Explanation:

What would happen to this company is that the company's current ratio would increase. The current ratio refers to a ratio that measures the company's capacity to fulfill its short-term obligations, usually within a year. Therefore, this can also be considered a liquidity ratio. The way in which it does it is by comparing the company's current assets to its current liabilities. The current ration in this case would increase due to the fact that the company used the money to pay off some of its short-term notes payable.

8 0
3 years ago
Other questions:
  • When an organization has a strong talent pool available from which it can draw employees, the organization is positively influen
    15·1 answer
  • A strong organization culture is one in which lower-level employees do not concern themselves with the firm's goals, priorities,
    14·1 answer
  • A nurse is caring for an older adult client with advanced Parkinson's disease. Which client statement about advance directives i
    8·1 answer
  • 4. Which profession helps to make certain the workplace is safe? What do people in this profession do?
    12·2 answers
  • If you invest P dollars and you want the investment to grow to A dollars in t years, the interest rate that must be earned if in
    13·1 answer
  • _____ _____ includes employee behaviors that are directly involved in the transformation
    9·1 answer
  • The _______ price is the point at which supply and demand for a good are equal.
    9·2 answers
  • Sylas is studying financial planning in one of his classes. his teacher has assigned him to create a timeline of his financial f
    13·1 answer
  • The act of dividing a market into segments of customers is referred to as
    8·1 answer
  • 1. Almost half the jobs in this country come from small businesses.<br> True<br> False
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!