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lukranit [14]
2 years ago
14

Judy's Boutique just paid an annual dividend of $3.31 on its common stock. The firm increases its dividend by 3.75 percent annua

lly. What is the company's cost of equity if the current stock price is $42.28 per share
Business
2 answers:
Elina [12.6K]2 years ago
8 0

Answer:

Cost of equity = 11.87%

Explanation:

Cost of equity is defined as the amount that a business pays to its equity investors or shareholders as compensation for the risk of finding the business.

Usually businesses may not have enough capital to run their operations properly in meeting organisational goals. So they seek for funding from investors, and these investors are compensated for giving the business capital.

The formula for cost of equity is

Cost of equity={ (Dividend * Growth rate) ÷ Current stock price} + percentage increase in dividend)

Cost of equity={ (3.31 * 1.0375) ÷ 42.28} + 0.0375)

Cost of equity= (3.434 ÷ 42.28) + 0.0375 = 0.1187

Cost of equity = 11.87%

Sunny_sXe [5.5K]2 years ago
5 0

Answer:

11.87%

Explanation:

Calculation for Judy's Boutique company's cost of equity if the current stock price is $42.28 per share

Using this formula

RE=[(Annual dividend×dividend Increase percentage)/current stock price]+dividend increase percentage

Let plug in the formula

RE = [($3.31× 1+.0375) / $42.28] + .0375

RE=[($3.31×1.0375)/$42.28]+.0375

RE=($3.434125/$42.28)+.0375

RE=0.0812233+.0375

RE=0.1187×100

RE=11.87%

Therefore the company's cost of equity if the current stock price is $42.28 per share would be 11.87%

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The foreign exchange rate​ is:
ElenaW [278]

Answer:

Option C: the price of one​ country's currency in terms of another​ country's currency

Explanation:

Exchange rate is simply the rate at which one currency is converted into another currency. foreign exchange market is said to be a market for changing or converting the currency of one country into that of another country. It enables conversion of the currency of one country into the currency of another and provides some insurance against foreign exchange risk.

3 0
2 years ago
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m
tia_tia [17]

Answer:

Direct labor rate variance= $1,666 favorable

Explanation:

Giving the following information:

The company produced 5,200 units in January using 2,380 direct labor-hours.

The actual direct labor rate was $19.30 per hour

<u>To calculate the direct labor rate variance, we need to use the following formula:</u>

<u></u>

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (20 - 19.3)*2,380

Direct labor rate variance= $1,666 favorable

4 0
3 years ago
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of
vova2212 [387]

Answer and Explanation:

1. The computation of overhead rate based on direct labor cost is shown below:-

Overhead rate = Overhead applied × 100 ÷ Direct labor cost

= 888 × 100 ÷ 1,200

= 74%

2. The Preparation of job-order cost sheet for the four jobs is shown below:

Particulars                Job 86        Job 87        Job 88        Job 89

Beginning balance $6,888       $6,820

Direct materials       $3,000      $7,000         $2,100          $1,500

Direct labor              $800          $6,000        $900            $500

Applied overhead  

is 74% of direct labor $592           $4,440       $666            $370

Total                          $11,280       $24,260      $3,666      $2,370

3. The computation of ending balances of Work in Process and Finished Goods is shown below:-

Work in process of Job 88 = $3,666

Finished goods = Total of Job 86 + Total of Job 89

= $11,280 + $2,370

= $13,650

4. The computation of the Cost of Goods Sold for March is shown below:-

Cost of goods sold is

= Job 87

= $24,260

7 0
3 years ago
Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for De
Dvinal [7]

Answer:

Equivalent units

a) Weighted average =  523,200 units

b)  FIFO =  480,000 units

Explanation:

<em>FIFO Method.</em>

<em>Fully worked units</em><em>: These represent units of inventory that were started in a current period and completed that same period. The fully worked units are calculated in order to separate the opening inventory from  the the newly introduced when accounting for completed units under the FIFO.</em>

For magic company , fully worked units is

= 480,000 - 72,000 = 408,000 units

Equivalent units using Weighted Average

<em>Here, there are no distinction between opening inventory and the newly introduced</em>.

                                                            <em>            Equivalent Units</em>

Completed unit                    (100%× 480,000) = 480,000

Closing inventory                (60% × 72,000) = <u>     43,200</u>

Total equivalent units                                       <u>523,200</u>

Equivalent Units using FIFO

Item                                                               <em>Equivalent Units</em>

Opening inventory              (40% × 72,000) =  28,800

Fully worked                        (100%× 408,00) = 408,000

Closing inventory                (60% × 72,000) = <u> 43,200</u>

Total equivalent units                                     <u>480,000 </u>

<u />

Equivalent units

a) Weighted average =  523,200 units

b)  FIFO =  480,000 units

8 0
3 years ago
___________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to comple
svp [43]

Answer:

PERT ( Program Evaluation Review Technique)

Explanation:

PERT stands for Program Evaluation Review Technique. PERT charts are tools used to plan tasks within a project - making it easier to schedule and coordinate team members accomplishing the work.  

PERT is a project management planning tool used to calculate the amount of time it will take to realistically finish a project.

Hence PERT is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project

6 0
3 years ago
Read 2 more answers
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