Answer:
12.51%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.10 × 26%) × ( 1 - 40%) + (0.10 × 3%) + (0.15 × 71%)
= 1.56% + 0.30% + 10.65%
= 12.51%
Simply we multiply the weightage with its cost
The company's equity cost of capital is 8.4%, and a stock is anticipated to perpetually pay $1.25 a share. In ten years, an investor can anticipate paying $14.88 for each share. correct option is (D)
P = D/R = 1.25/0.084 = $14.88
Since, the dividend paid by the company will always be $1.25, the price of stock the share will always remain the same, even after ten years
A security that denotes ownership of a portion of the issuing company is referred to as a stock, also known as equity. Shares, which are units of stock, entitle its owners to a percentage of the company's assets and income based on how many shares they possess.
The cornerstone of many individual investors' portfolios, stocks are mostly bought and sold on stock exchanges. Government rules aimed at shielding investors from dishonest tactics must be followed when trading stocks.
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The complete question is
a stock is expected to pay $1.25 per share every year indefinitely and the equity cost of capital for the company is 8.4%. What price would an investor be expected to pay per share ten years in the future?
A) $37.20.
B) $29.76.
C) $22.32.
D) $14.88.
Answer:
More info needed. (See Explanation):
Explanation: Needed more info to be solveable.
To sell products to customers located in a particular area, Sarah can use the option called location targeting. She can specifically target people located in certain places, towns, cities, and exclude some other places: for example, she can target all of California, but exclude the city of San Fransisco. She can also target people based on their demographics, occupation, education, interests...
Answer:
Deductive arguments have unassailable conclusions assuming all the premises are true, but inductive arguments simply have some measure of probability that the argument is true—based on the strength of the argument and the evidence to support it
Explanation:
