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nirvana33 [79]
3 years ago
9

Kellogg pays $2.00 in annual per share dividends to its common stockholders, and its recent stock price was $82.50. Assume that

Kellogg’s cost of equity capital is 5.0%. Estimate Kellogg’s expected growth rate based on its recent stock price using the dividend discount model with increasing perpetuity. Do not round until your final answer. Round answer to one decimal place (ex: 0.0245 = 2.5%).
Business
1 answer:
n200080 [17]3 years ago
8 0

Answer:

2.52%

Explanation:

Given that

Annual dividend paid per share = $2

Recent stock price = $82.5

Cost of capital = 5.0%

So, the expected growth rate is

Price = Recent dividend × (1 + growth rate ) ÷ (cost of equity - growth rate)

58.73 = $2 * (1 + Growth rate) ÷ (0.05 - Growth rate)

After solving this, the expected growth rate is 2.52%

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The  answer is $120.

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= $1.20 × 100 Share

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5 0
1 year ago
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Dominik [7]

Answer:

person-oriented; task- oriented

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On the other hand, Amanda focusing on task accomplishment; directing work activities towards goals and ensuring all her team members are up and doing shows she is a task-oriented leader.

7 0
3 years ago
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IRISSAK [1]

In planning the database it is important to consider- what each table is 'about'.

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Anarel [89]
The correct answer will be A
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Indicate the proper accounting treatment for a change in the rate used to compute warranty costs.
Lana71 [14]

Answer:

a. Accounted for prospectively

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