Answer:
Cost of equity= 10,50%
Explanation:
The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.
Cost of equity= (D1/P0)+g
D1= next year dividend (D0*
P0=actual price
g= growth rate of dividends
In this exercise:
D1=D0*(1+g)=0,90*1,07=$0,963
P0=$27,50
g=0,07
Cost of equity= 0,963/27,5+0,07=0,1051=10,50%
By paraphrasing, an individual is:
ANSWER C. Putting another person's idea into different words or context
Answer:
marginal cost is 15 cents
Explanation:
given data
car rent = $29.95
distance d1 = 150 miles
cost = 15 cents per miles
distance d2 = 200 miles
to find out
marginal cost
solution
first we find here cost for driving d2
cost for 150 to 200 miles = 15 × 50
cost for 150 to 200 miles = 750 cents = $7.5
so
cost for driving d2 = $7.5 + $29.95
cost for driving d2 = $37.45
so
marginal cost will be
marginal cost = change in cost / chance in distance
marginal cost = 37.45 - 39.95 / ( 200-150)
marginal cost = 7.5 / 50 = 0.15
marginal cost is 15 cents
