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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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The type of <span>entity that they created if they have no personal liability for the firm's debts would be: Corporation
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5 0
3 years ago
Discuss Two social factors that may contribute to unemployment in South Africa amongst the youth?​
elena55 [62]

Some of the social factors that have led to unemployment in South Africa amongst the youth are:

  • High population growth.
  • High poverty rates.

As a result of high population growth, the number of youth in South Africa  has increased to a point where getting jobs for all of them is quite difficult.

High poverty rates also mean that a lot of the youth are unable to afford a tertiary education which means that they are unable to get the qualifications needed for a job.

Find out more on factors leading to unemployment at brainly.com/question/305041.

6 0
2 years ago
Read 2 more answers
What is a diversionary incentive?
Vinvika [58]

Answer:E- A temptation to start a crisis to create public support at home

Explanation: A diversionary incentive is a term used to describe the various attempts of a foreign country to create crisis in a given country in order to gain support at home.

Diversionary incentive is usually implemented by certain countries for their own selfish gains,they want their own Citizens to focus their minds and interests in crisis outside their own Country,hence lossing focus of the problems bedeviling their own country.

5 0
3 years ago
Maria, a senior product manager at Impasse Software, recently retired. Since sales of Maria's primary products have been declini
sp2606 [1]

Answer:

Attrition

Explanation:

The right answer to the question is attrition and what is attrition in business sense: is simply means a situation where organization staff strength gradually and deliberately reduces as employees retire or resign and are not replaced.

So in this case Maria retire and nobody was hired to replace her position in the company and again all her subordinates were reassigned to other departments. It is also worth noting that attrition could also be a way of a company is losing her customer base as a result of other factors

6 0
3 years ago
Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the compa
Snezhnost [94]

Answer:

Stockholders' equity at the end of the year was $110,000.

Explanation:

Beginning Balance of Stockholder's Equity = $40,000

Net Income for the year = $90,000

Dividend declared in the year = $20,000

Ending Balance of Stockholder's Equity = Beginning Balance of Stockholder's Equity + Net Income for the year -Dividend declared in the year

Ending Balance of Stockholder's Equity = $40,000 + $90,000 - $20,000

Ending Balance of Stockholder's Equity = $110,000

8 0
3 years ago
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