1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Minchanka [31]
3 years ago
7

ssume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 =

$0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.29% 9.68% 10.08% 10.50% 10.92%
Business
1 answer:
Rufina [12.5K]3 years ago
7 0

Answer:

Option (D) is correct.

Explanation:

Given that,

Dividend, D0 = $0.90

Price, P0 = $27.50

Growth rate, g = 7.00% (constant)

D1 = D0 (1 + g)

    = $0.90 × (1 + 0.07)

    = $0.90 × 1.07

    = $0.963

Cost of equity, Ke = [ D1 ÷ P0 ] + g

                               = [$0.963 ÷ $27.50 ] + 0.07

                              = 0.0350 + 0.07

                               = 0.1050 i.e 10.50 %

You might be interested in
What is the purpose of science technology and society​
mixas84 [53]

Answer:

Science, Technology and Society (STS) is an interdisciplinary field that studies the conditions under which the production, distribution and utilization of scientific knowledge and technological systems occur; the consequences of these activities upon different groups of people.

Explanation:

4 0
3 years ago
Read 2 more answers
Sid Slick represents himself as Richard Rich to Ortie Ozarka. Ortie, believing that Sid was really Richard, gave Sid a check pay
Ganezh [65]

Answer:

Harry is a proper holder of the instrument

Explanation:

Impostor rule is the legal principle which states that an imposter endorsement of a negotiable instrument is not a forgery. The loss falls on the drawer of cheque and not on the third party or the bank that clears it. Art and Harry acted in good faith for the consideration.  Hence, Harry is a proper holder of the instrument as any person in its possession is its holder.

5 0
4 years ago
Rhubarb pie is a dessert. therefore, whoever eats rhubarb pie eats a dessert
miskamm [114]
The argument above is a deductive reasoning. A deductive reasoning draws a conclusion from a series of premises that are held to be true. The argument also employs no informal fallacy. The confusion lies though on the first premise if it is true.
5 0
3 years ago
Economists assume that individual decisions will be determined by the output or production costs they create. the output or prod
Igoryamba

Answer:

the trade-offs they creates.

Explanation:

Trade-off is the opportunity cost of taking a particular decision

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives

For example, if there is a worker who values an hour of leisure at $10 and he is paid $20 per hour. If he has to choose between leisure and working. He would choose to work because the opportunity cost of not working (10) is lower when compared to the opportunity cost of leisure ($20)

7 0
3 years ago
CVS pharmacy collects data from bar-coded products. These data can be evaluated and combined to monitor which CVS products are i
Pani-rosa [81]

Answer:

InfoScan.

Explanation:

A UPC is an acronym for universal product code. UPC is typically used for the identification of a specific product and its manufacturer (vendor) through a unique code that is printed on the product.

Basically, a universal product code (UPC) comprises of two (2) main parts;

A machine-readable barcode that contains sets of vertical black lines.

A unique twelve (12) digit number placed beneath or adjacent to the machine-readable barcode.

The first six-digits of the UPC represents the manufacturer and is printed on all of its products while the next five-digits is the product's unique reference number (item number) and the last digit is typically known as a check digit, used for the verification of the authenticity of a UPC.

Generally, the universal product code are usually scanned with a barcode scanner and this makes it easier to identify a product, as well as its price.

In this scenario, CVS pharmacy collects data from bar-coded products, which can be evaluated and combined to monitor its products that are in demand by customers. Also, this method is used to track pricing data to make sure that its pricing remains competitive among rivals. Thus, thiis is an example of InfoScan used for systemically scanning price information on products.

3 0
3 years ago
Other questions:
  • Mr. Jenkins is interested in enrolling in a Medicare cost plan and has sought your advice. What would you tell him?
    13·1 answer
  • All of the other options that are given up when a business makes one choice over another are called
    9·2 answers
  • 1. The loanable fund model tells us that, other things being equal, capital will tend to flow from countries with __ to countrie
    15·1 answer
  • A fire destroyed a large percentage of the financial records of the Strongwell Co. You have the task of piecing together informa
    13·1 answer
  • Janis wants to open a restaurant.? she is not interested in a franchise; she wants to build her business literally from the grou
    5·1 answer
  • What do u all think about India...??​
    14·2 answers
  • The growth of the global company has led to the growth of global fund raising as companies seek low-priced sources of funds thro
    7·1 answer
  • Describe how the specific practices of bronson methodist hospital in the opening performance exellence.
    15·1 answer
  • n 2021, nora (28) lived with her daughter, avery (4), her brother, jack (19), and her fiancée, luke (30) for the entire year. no
    13·1 answer
  • The first step to a successful value-driven marketing strategy is to determine whom to serve with a market offering. to make thi
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!