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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 %

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3 0
3 years ago
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Situational leadership theories propose that the effectiveness of a particular style of leader behavior depends on the situation
kondaur [170]

Answer:

1) Supportive behaviors->option (d)

2) Group-oriented decision-making behaviors->option (f)

3) Achievement-oriented behaviors->option (b)

4)  Work-facilitation behaviors->option (c)

5) Value-based behaviors->option (h)

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7) Path-goal–clarifying behaviors->option (a)

8)  Interaction-facilitation behaviors->option (e)

Explanation:

1) Supportive behaviors:- (d)

Supportive conduct illustrates the need to meet and be polite to workers as illustrated in Option D.

Option A talks about offering guidance, Option B talks about setting goals, Option C talks about preparation and scheduling, Option E talks about conflict resolution, Option F talks about problem-solving and participatory decision-making, Option g talks about employee relationships, engagement, and networking, Option H talks about vision, self-confidence, high-perforation contact.

2) Group-oriented decision-making behaviors:- (f)

This leadership conduct poses a challenge to the group and allows them to engage in decision-making, to provide the required group analysis, etc.  

Option A talks about offering direction, Option B talks about setting goals, Option C talks about planning and scheduling, Option D talks about well-being and being comfortable with employees, Option E talks about conflict resolution, Option F talks about problem-solving and participatory decision-making, Option g talks about employee relationships, engagement, and networking.

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This leadership conduct represents the setting of demanding goals for workers and shows confidence.  

Option A talks about providing guidance, option B talks about setting challenges, option C talks about planning and scheduling, option D talks about well-being and being friendly with employees, option E talks about dispute resolution, option F talks about problem-solving and participatory decision-making, option g talks about employee relationships, interaction, and networking.

4)  Work-facilitation behaviors:- (c)

This involves the process of planning, scheduling, etc. and providing feedback to assist employees as reflected in Option C.

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This activity involves vision building, ambition, confidence, communication of goals, loyalty, and high performance to others, etc.  

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6) Representation and networking behaviors:- (g)

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8)  Interaction-facilitation behaviors:- (e)

This involves resolving disputes, facilitating interactions, etc.

Option A talks about offering direction, Option B talks about setting goals, Option C talks about planning and scheduling, Option D talks about well-being and being comfortable with employees, Option E talks about conflict resolution, Option F talks about problem-solving and participatory decision-making, Option g talks about employee relationships, engagement, and networking.

5 0
4 years ago
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anzhelika [568]
The answer would be C hope it helps friend
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