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Anika [276]
3 years ago
7

Judy's Boutique just paid an annual dividend of $2.77 on its common stock. The firm increases its dividend by 3.50 percent annua

lly. What is the company's cost of equity if the current stock price is $40.12 per share?
Business
1 answer:
Shalnov [3]3 years ago
8 0

Answer:

10.4%

Explanation:

The formula to calculate the cost of equity is:

Cost of equity= (DPS/MPS)+r

DPS= Dividend per share

MPS= Market price per share

r= Growth rate of Dividends

Cost of equity= (2.77/40.12)+0.0350

Cost of equity=0.069+0.0350

Cost of equity=0.104→ 10.4%

The company's cost of equity if the current stock price is $40.12 per share is 10.4%.

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soldier1979 [14.2K]

True, Compared to the other main forecasting techniques, market-based forecasting of exchange rates has proven to be more reliable and consistent.

What is Market-based forecasting?
By utilising a wide range of data that describe the nature of demand within the organization's service area, market-based demand forecasting is a technique for estimating future demand for a healthcare organization's services. The primary and secondary service areas, population breakdowns by various demographic categories, discharge utilisation rates, market size, and market share by service line and overall are just a few examples of the information we're talking about. Strategic planners can develop scenarios describing potential future demand based on observable market dynamics and a variety of explicit assumptions about future trends. Then, financial planners can assess every scenario to see how it might affect particular financial and operational metrics, like operating margin, days with cash on hand, as well as debt-service coverage, and create a strategic financial plan that accounts for a variety of contingencies.

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3 0
1 year ago
Rachel McGovern bought a 10-year bond for $921.77 seven years ago. The bond pays a coupon of 15 percent semiannually. Today, the
trasher [3.6K]

Answer:

17%

Explanation:

Purchase price of bond = $921.77

Years investment held = n = 7

Coupon rate = C = 15%

Frequency of payment = m = 2

Annual coupon = $1,000 × (0.15/2) = $75.00

Realized Yield = i

Selling price of bond = PB = $961.22

The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.

5 0
3 years ago
Use the following information:Beginning cash balance on March 1, $72,000.Cash receipts from sales, $300,000.Budgeted cash paymen
Lynna [10]

Answer and Explanation:

The preparation of the cash budget for the month of March ended is presented below:      

                                              Cash Budget

Particulars                           Amount  ($)

Opening Cash Balance         72,000

Add: Cash Receipts from Sales 300,000

Total Cash Available           372,000

Less:

Cash Payments  

Purchases                             140,000

Salaries                                    80,000

Cash Expenses                     45,000

Repayment of Bank Loan      20,000

Total Payments                    -285,000

Closing Cash Balance              87,000

We simply deduct the all payments from the total cash available so that the ending balance of cash could come

8 0
3 years ago
"Economists warn of an economic downturn. Investments and lending have risen as prices have skyrocketed. Unemployment is up as b
kipiarov [429]
For me, the incorrect passage would be "Investments and lending have risen". In an economic downturn, investors are reluctant to put money on a market that is experiencing losses. 

Economists warn of an economic downturn. Prices have skyrocketed. Unemployment is up as businesses move up to reduce <span>costs. The Fed considers lowering discount rates and reserve requirements to increase monetary circulation.</span>



8 0
3 years ago
At one time, most of the cars produced in Mexico were sold in Mexico. Today, however, Mexico both exports and imports cars. How
nignag [31]

Answer:

Mexico's speciality is the manufacture of high-end vehicles and it exports those. They then import low-end vehicles that are usually manufactured at a low cost in other places.

Explanation:

Comparative advantage refers to the ability of an economy to create products and services at a reduced cost than that of the business partners.

8 0
4 years ago
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