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lbvjy [14]
3 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]3 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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A direct mailer falls under the category of sales, not marketing.<br><br> True<br> False
Len [333]

Answer:

False.

Explanation:

A direct mailer can be defined as a form of marketing which involves the use of a mail service such as a courier or postal service to physically deliver a piece of promotional product or material to a target audience such as home or business. Some examples of a direct mailer are catalogs, postcards, solicitation letters, flyers, coupons, brochures etc.

<em>Hence, a direct mailer falls under the category of marketing, not sales.</em>

3 0
3 years ago
Stephanie is working on a report and has reached phase 2 of the 3-x-3 writing process. what should she do first in this second p
-Dominant- [34]

Research and collect information.

<u>The phases of the 3 x 3 process are:</u>

1. Pre-writing: think about your audience, anticipate the reaction to your message adapt the message to the audience

2. Drafting: <u>research and collect information,</u> organize it and write the first draft

3. Revising: Edit, proofread, and make sure it meets the goals that you developed in the pre-writing process.

6 0
3 years ago
Beans Coffee &amp; Cocoa Company makes and sells a chocolate flavored coffee drink under the name "CoCoCafe." Darkroast Java, In
SSSSS [86.1K]

<u>Full question:</u>

Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe."

This is most likely:

a. copyright infringement.

b. patent infringement.

c. trademark infringement.

d. a theft of trade secrets.

<u>Answer:</u>

This is most likely:  trademark infringement.

<u>Explanation:</u>

Trademark infringement is described as the illegal practice of a trademark or service impression. This exercise can be in contact with goods or services and may commence to distraction, fraud, or a disagreement about the original company a commodity or service developed from.

Trademark proprietors can hunt proper action if they consider their marks are being transgressed. . If infringement of a trademark is fixed, a court procedure can stop a party from using the emblem, and the master may be granted financial relief.

3 0
3 years ago
An individual who wants to earn a living from a new business endeavor has decided to start his business as a not-for-profit orga
skad [1K]

Answer:An incorporated business that puts all of its profits back into the business is a corporation. They are used by those common people and it can help the others who need the money. This will secure that the funds of these corporation will be shared also into its members incase of emergency.

6 0
2 years ago
Which of the following would probably be a variable cost in a soda bottling plant? a. Direct labor b. Bottles c. Carbonated wate
cestrela7 [59]

Answer:

Option E

 

Explanation:

A variable cost refers to the business expense that varies in relation to revenue from manufacturing. Based on the volume of output of a business, variable expenses gets significantly impact; these increase as productivity increases, and decline as production declines. Sources regarding variable costs typically involve raw material and storage costs.

Thus, from the above we can conclude that all of the mentioned costs are variable costs as direct labor , bottles and water will all increase as the level of production will increase.

5 0
3 years ago
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