Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%
Why so that saying did correct answe right I don’t know the answer I am just answering to see something about my points because they are negative and I am trying something
None of them is the answer
Answer:
interest payable 66,000
note payable 384,000
Land 325,000
Gain on disposal 125,000
Explanation:
600,000 x 11% = 66,000 interest payable
the land is being used to settle the note along with the accrued interest at the time:
the accounting of Transit developments record the land at cost: 325,000
as the market valuye is 450,000 so a gain for 125,000 will be recognize.
450,000 market value - 66,000 interest payable: 384,000 payment on the note principal
the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal
Answer:
The total amount of stockholders' equity is: $10,000
Explanation:
The accounts and values included in stockholders' equity are:
- Common stock 4,000 (1)
- Paid in capital 4,000 (2)
- Treasury stock -1,000 (3)
- Retained earnings <u> 3,000 (4)</u>
Total stockholders' equity 10,000
1 - Nominal value of outstanding shares.
2- Difference between the price paid by stockholders when shares were issued and nominal value.
3- Shares recovered by the company.
4- Earning accumulated by the company.
