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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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When loans are amortized, monthly payments are ________ , while the interest portion of the monthly payment ________ and the pri
vitfil [10]

Answer:

Constant, Decreases, Increases

Explanation:

4 0
2 years ago
The cashier for Bell Buoy rang up sales totaling $5,104, but had $5,120 to deposit, which journal entry would be recorded? Multi
alexandr402 [8]

Answer:

A debit to Cash for $5,120, a credit to Cash Overage for $16, and a credit to Sales Revenue for $5,104.

Explanation:

In the current situation, the cash received is in excess of revenue recorded, thus, there will be cash overage.

As per books cash shall be $5,104 but since actual cash is $5,120 there is cash overage of $16

Therefore, for this, actual cash received shall be debited = $1,520

Cash overage shall be credited for $16

And accordingly sales of $5,104 shall be recorded as a credit.

Thus, correct option is: Entry A

3 0
3 years ago
Queen, inc., has a total debt ratio of .32.
gulaghasi [49]

(A) Debt ratio = 0.32

Debt/(debt + equity)= 0.32

Debt = 0.32 *Debt + 0.32 *Equity

0.68* Debt = 0.32* Equity

Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity

Debt /equity ratio = (0.32/068*Equity)/Equity

Debt/Equity ratio = 0.32/0.68 = 0.47

Debt-equity ratio = 0.47 (Rounded to 2 decimals)

(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47

Equity multiplier = 1.47 (Rounded to 2 decimals)

4 0
3 years ago
The concept that consists of the distinct phases that a family progresses through from formation to retirement, each phase bring
suter [353]

Answer:

The correct answer is: family life cycle.

Explanation:

The family life cycle refers to the natural stages families go through over time. There is no set path these stages follow but the most common steps in the life cycle of a family are <em>leaving home -single young adults, joining families through partnership, families with young children, families with adolescents, launching children and moving on, </em>and <em>families in later life</em>.

5 0
3 years ago
Supply and demand determine the relative value of any two currencies through the foreign exchange market
Radda [10]

Answer:

true

I hope it is helpful to you

5 0
3 years ago
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