Answer:
a. $28
b. $19
c. 800 watches
Explanation:
The equation is
p = D(q) = 28 - 2.25
The equation of the demand would be
P = 28 - 2.25q
a. The price would be
= $28 - 2.25 × 0
= $28 - 0
= $28
b. The price would be
= $28 - 2.25 × 4
= $28 - 9
= $19
The quantity demanded is come in hundreds so we take only 4
c. The quantity woul dbe
$10 = $28 - 2.25q
$10 - $28 = -$2.25q
-$18 = -$2.25q
So q would be
= 800 watches
Answer:
Cost of external equity= 26.9%
Explanation
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
The model can me modified to determined the cost of equity having flotation cost as follows:
Ke = D(1+r )/P(1-f) + g
Ke= Cost of equity
D- current dividend,
D(1+g) - dividend next year
p- price of stock - 31,00$
f - flotation cost - 14%
g- growth rate - 7%
Ke= 5.30/31× (1-0.14) + 0.07
= 0.2687997 × 100
= 26.9%
Answer: I don’t think there’s anything else, maybe That’s why a lot of people don’t like baruto because it’s kinda unfinished.
Explanation:
Answer:C. Smaller stock have lower volatility than larger stock.
Explanation:
Volatility refers to the prones of a stock price to changes in market conditions. The higher the impact of changes in market conditions on a stock the higher the volatility level and the lower the impact of changes in market conditions on a stock price the lower the volatility. However the size of a stock does not necessarily determine the level of his volatility, a
stock may be small but still have a large volatility level and stock may be large and have low volatility level.
Yakov Co. has $2.3 million of debt, $3.04 million of preferred stock, and $1.34 million of common equity is the symbol that represents the cost of preferred stock in the weighted average cost of capital (WACC) equation.
The math is easy. Divide the present value of each stock position by the total value of the portfolio and multiply by 100 to convert it to a percentage. These weights indicate how dependent the portfolio's performance is on individual stocks.
The cost of preferred stock represents the rate of return required by preferred shareholders and is calculated by dividing the annual preferred dividend (DPS) paid by the current market price.
WACC equation Part 2 – Borrowing Costs and Preferred Stock
Borrowing cost is the rate of return to maturity on a company's debt; similarly, the cost of preferred stock is the rate of return on a company's preferred stock.
Learn more about the WACC equation at
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