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
Anton [14]
3 years ago
10

Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate

of 5% per year. The price of Kinslow's common stock today is $25 per share. If Kinslow decides to issue new common stock, flotation costs will equal $2.00 per share. Keys' marginal tax rate is 34%. Based on the above information, the cost of retained earnings is;
Business
1 answer:
Ahat [919]3 years ago
3 0

Answer:

15.50%

Explanation:

The computation of the cost of retained earning is shown below:

As we know that

Price = Dividend × (1 + growth rate) ÷ (required rate of return - growth rate)

$25 = $2.50 × (1 + 0.05) ÷ (required rate of return - 5%)

$25 = $2.625  ÷ (required rate of return - 5%)

After solving the required rate of return is 15.50%

We simply applied the above formula to find out the cost of retained earning

You might be interested in
The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 159,000 Income Tax
Kryger [21]

Answer:

Income Statement is attached in the pictures.

Explanation:

5 0
2 years ago
Prebankruptcy counseling includes all of the following except:
Anon25 [30]
My answer would probably be B!
7 0
3 years ago
"E3-26A Record manufacturing overhead (Learning Objectives 5 & 6) Refer to the data in Exercise 3-25A. Smith’s accountant fo
Kipish [7]

Explanation:

Journal entries are used by Accountants to post transactions into the respective General Ledger of a business.

It typically shows a debit side which records increase to expenses or Assets, it also could be a reduction to Income or Liabilities (if it is an adjustment Journal). And it also shows a credit side which records an increase to Income or Liability, it could also be a reduction to expense or Asset (if it's an adjustment journal)

4 0
3 years ago
Typically, the ________ style of leader avoids dominating groups. autocratic laissez-faire authoritarian democratic
aleksklad [387]

Typically, the<u> laissez-faire</u> style of a leader avoids dominating groups.

In French, "laissez-faire" literally means "let someone do what they want". The origins of laissez-faire are associated with his group of 18th-century French economists, the Physiocrats, who believed that government policy should not interfere with the running of the natural economy.

An example of laissez-faire is the economic policies of capitalist countries. An example of laissez-faire is when homeowners can grow whatever they want in their front yard without asking for a city permit. Do not interfere in the affairs of others.

Disclaimer: Learn more about laissez-faire here brainly.com/question/17259480

#SPJ4

3 0
2 years ago
Sarah's house caught on fire. Through the prompt assistance of her neighbor Odessa, the fire was quickly extinguished. In gratit
Zepler [3.9K]

Answer:

To enforce this promise we need to analyse whether there has been any agreement or contract between Sarah and Odessa and whether the same can be enforced.

Explanation:

In Sarah's case, her offer to gratuitously pay the neighbor for assisting in the house fire is not an enforceable contract. When the neighbor rushed to help in the fire, the offer to pay $1,000 had not yet been extended. When Sarah did extend the offer to pay $1,000, there was no consideration exchanged between both parties. The consideration, putting out the fire, had already occurred without the offer or acceptance of a contract.

Consider an alternate scenario. Sarah's house was on fire, and she could not wait for the fire department. She ran to her neighbor's house, begged for help, and offered $1,000 in exchange for neighbor's assistance. After hearing Sarah's plea, the neighbor agrees to assist in extinguishing the fire. This constitutes a contract; an offer, consideration, and acceptance.

3 0
2 years ago
Other questions:
  • Which type of promotion do many people consider more credible because it is less biased?
    9·1 answer
  • The stage at which a project is conceived is known as the ________ process
    11·1 answer
  • Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
    10·1 answer
  • The fixed cost of Perfect Pizzas, a pizza restaurant, is $400,000 per year. The cost of ingredients and chef to make one pizza i
    11·1 answer
  • __________ is a growing tool for managers to enhance communication and collaboration in support of empowered or bossless work en
    6·1 answer
  • Indicate whether or not each expenditure would be included in the cost of acquisition for each item below. The answer box provid
    6·1 answer
  • Your grandmother has promised to give you $10,000 when you graduate from college. If you speed up your graduation by one year an
    10·1 answer
  • The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants includes the elem
    12·1 answer
  • You are in the middle of an interview, and you feel like things are going horribly. The interviewer is asking questions that you
    8·2 answers
  • enterprise project management software is also known as a tool of project management software.low-end mid range high-end baselin
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!