Answer and Explanation:
The computation is shown below:
a. The company cost of capital is
Cost of equity = (D1 ÷ share price)+ Dividend growth rate
= ($1 ÷ $30) + 0.04
= 0.033 +0.04
= 0.0733 or 7.33%
Now
b. Cost of new equity is
= (D1 ÷ share price × (1 - flotation cost)) + Dividend growth rate
= [$1 ÷ $30 × (1 - 0.1)] + 0.04
= ($1 ÷ $30 × 0.9) + 0.04
= 1 ÷ 27 + 0.04
= 0.037 + 0.04
= 0.07704 or 7.71%
Answer: Mutual agreement to terminate the listing
Explanation: Analysing both conditions, The fact that Market is slow coupled with the defective condition of Mary's property may both culminate in Jennings finding a suitable buyer for the property. To fix this, Jennings proposed that Marcy being the owner should fix the property so as to increase sales probability, which Marcy declined as she was sure the location of the property was good enough to attract buyers. Here, both have different notions and cannot seem to Rea hba compromise in other to aid the sale of the property, the best option is for both Marcy and Jennings Homes to reach a mutual consent and terminate the listing contract.
Answer: C. it's a good time to buy the wood.
Explanation:
$500 = 738NZ dollars, therefore 738 NZ dollar ÷ $500 = 1.476NZ dollar
The current exchange rate is $1 = 1.476NZ dollar
10 foot slab costs $5000, Tee Golf Resort will pay $ 3387.53 ($5000/1.476NZ)
if they import wood from New Zealand. Tee Golf Resort will pay less than $5000 if they import Wood from New Zealand at the current exchange rate. This is a Good time for them to import woods
Know that giving customers too many choices can overwhelm and lead to fewer sales the benefit of limited sharing options
