Answer:
Cost of equity = 8.22%
Explanation:
Cost of equity = Dividend per share /current market value + growth rate of dividend
Cost of equity = 2/90 + 6%
Cost of equity = 0.0222 + 6%
Cost of equity =0.0222 + 0.06
Cost of equity = 0.0822
Cost of equity = 8.22%
Answer:
when valuing companies with temporarily high growth rates.
Explanation:
Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).
These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.
If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.
Multistage dividend growth models
It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.
The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.
Answer:
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Explanation:
Data provided in the question:
Percentage downsize in the workforce = 15% = 0.15
Cost of exit interviews = $100
Normal separation cost = $5,000
Now,
Total separation cost per employee = Cost of exit interviews + Normal separation cost
= $100 + $5,000
= $5,100
Therefore,
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Answer:
TRUE
Explanation:
budgets are made to help design a plan for spending
For make-or-buy selections, a provider's ability to maintain the secrecy of intellectual property is taken into consideration as an opportunity price.
Intellectual property is a class of property that consists of intangible creations of the human intellect. there are numerous sorts of highbrow property, and a few international locations apprehend extra than others. The quality-recognized types are copyrights, patents, trademarks, and exchange secrets and techniques. intellectual belongings (IP) refers to creations of the mind, consisting of innovations; literary and creative works; designs; emblems, names, and pictures used in commerce.
Examples of the intellectual property consist of a writer's copyright on an e-book or article, an exceptional brand design representing a soft drink agency and its products, unique design elements of a web website, or a patent on a specific technique to, for instance, manufacture chewing gum.
Learn more about Intellectual property here: brainly.com/question/1083623
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