When paraphrasing or summarizing, it is not necessary to give credit to the original source if you use your own words.

Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend b

andrew-mc [135]

Answer:

30.92%

Explanation:

You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM

Dividend discount model;

cost of equity; r = (D1/P0) +g

whereby, D1 = next year's dividend = 3.00

P0= current price = 13.65

g = dividend growth rate = 11% or 0.11 as a decimal

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r= 0.3298 or 32.98%

Using CAPM;

r = risk free + beta (Market risk premium)

r = 0.049 + (2.8 * 0.0856)

r = 0.049 + 0.2397

r = 0.2887 or 28.87%

Next, find the average of the two cost of equities;

=(32.98% + 28.87% )/2

= 30.92%

3 0

3 years ago

Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the ye

ozzi

Answer:

Actual overhead= $153,400

Explanation:

Giving the following information:

During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600.

At the end of the year:

Manufacturing overhead was overapplied by $15,900.

If the applied manufacturing overhead was $169,300.

Because the manufacturing overhead was overapplied, we need to subtract from the applied overhead to determine the actual overhead.

Actual overhead= applied overhead - overapplied overhead

Actual overhead= 169300 - 15900= $153,400

5 0

3 years ago

If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would

Semenov [28]

The systematic response coefficient from inflation, would result in a change in any security return of 3.2 βI.

Explanation:

Given:

Expected rate of inflation = 3%

Actual rate of inflation = 6.2%

The change in security return can be calculated by obtaining the differences between actual and expected levels of inflation.

Change in security return= Actual rate of inflation- Expected rate of inflation

= 6.2%-3%

= 3.2%

Change in security return= 3.2 βI

7 0

3 years ago

The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw ma

ivanzaharov [21]

Answer:

TRUE

Explanation:

Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.

If the customers does not wish to pay the price, then there is no value.

So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.

Also storing of products is a non value activity as storing a product will not help the customer in any way and a customer will not pay for a product when it is stored and is of no use to the customer.

4 0

3 years ago

If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker

Molodets [167]

Answer: I. must establish an SEC-registered U.S. subsidiary.

III. can effect its business through another registered U.S. broker-dealer.

Explanation:

If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker-dealer must establish an SEC-registered U.S. subsidiary and can also effect its business through another registered U.S. broker-dealer.

3 0

3 years ago