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lbvjy [14]
4 years ago
5

Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the f

ollowing data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
Business
1 answer:
katrin [286]4 years ago
5 0

Answer:

Cost of Equity 12.9%

Explanation:

Cost of Equity is the rate of return required by the equity holders of the company. It is rate which is associated with the equity of the company. This can be calculated by using Discounted cash flow method of valuation of equity because this rate is used to discount the expected future dividend of related to equity.

Value of Equity = Dividend paid / ( rate of return - growth rate )

P0 = D1 / ( r - g )

$22.5 = $1.45 / ( r - 6.5%)

r - 6.5% = $1.45 / $22.5

r - 0.065 = 0.064

r = 0.064 + 0.065

r = 12.9%

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Oliga [24]

Answer:

I actually do think that people will stop buying this type of food from time to time because if it has calories added into it then it will make the price of the food go up and I don’t think that people would like that.For example, most people that are trying to keep their diet equal aren't going to buy this for two reasons.The first reason is because they don’t want to gain more calories and the second reason is because they don’t want to pay extra for calories.And to answer the question about the big mac, the price of it is just $13.20 and it just depends on how many calories are in there to add more to the price of the food. That's my answer to this question.

Explanation:

6 0
3 years ago
Which of the following do not apply to unearned revenues?
Lelechka [254]

Answer: Option D    

Explanation: In simple words, unearned revenue refers to the liability account that depicts the cash that is received in the current for the supply of good or service that will be made in some future period.

   For example- a door to door newspaper seller taking advance subscription fees for one year or any event organizing committee taking advance money for tickets of a concert that will happen in the future.

    Such incomes can only be  recognized when the intended service is completed for the customer.

6 0
3 years ago
500 adults in a certain city were classified as male or female and by their political preference Political Preference ----------
sergeinik [125]

Answer:

0.208

Explanation:

Probability is a value that determines how likely a event of outcome incur. It is expressed in ratio to the total value.  

        Conservative   Moderate    Liberal     Totals

Male        104                   81              88          273

Female    51                     68             108         227

Totals      155                   149            196         500

104 of the residents are conservative men from total of 500 residents, this value will be used to determine the probability.

Probability = Numbers of Conservative Man / Total Residents = 104 / 500 = 0.208

3 0
3 years ago
El factor productivo naturaleza se considera originario debido a que??
yan [13]

Answer:

Es decir todos aquellos elementos de la naturaleza sobre los que el hombre aplica su trabajo y su disponibilidad tecnológica para obtener los medios que le son necesarios. Características. - Es un factor productivo originario, pues es anterior a la producción, es decir, no es resultado de proceso productivo alguno.

Explanation:

6 0
3 years ago
Match the jobs descriptions with the job titles
OlgaM077 [116]

1) bill adjuster

2) budget analyst

3) claims adjuster

I'm pretty sure that those are right. Hope this helps :) :) :)

3 0
3 years ago
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