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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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Calculate percent change if the original value of your stock was $25 and the new value of your stock $30
crimeas [40]

Answer:

Percentage Change | Increase and Decrease

First: work out the difference (increase) between the two numbers you are comparing.

Increase = New Number - Original Number.

Then: divide the increase by the original number and multiply the answer by 100.

% increase = Increase ÷ Original Number × 100.

Explanation:

thats how you find out how to calculate percentage change in value

hope it helps

6 0
3 years ago
Read 2 more answers
The multiplier is greater than 1 because the change in autonomous expenditure leads to​ _______.
tangare [24]

Answer:

The correct answer is option B.

Explanation:

The multiplier shows the increase in total production due to change in expenditure.

The change in total expenditure is always greater than the change in expenditure.

This happens because a change in autonomous expenditure leads to grater change in the induced expenditure

Consequently, the value of multiplier is always greater than 1.

3 0
4 years ago
Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books so
Westkost [7]

Answer:

539,000.00  

Explanation:

As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.

For Etuck327,

The selling price is $39

Variable expense is $28

Break-even in units is 49,000 books.

Contribution margin per unit = selling price - variable costs

=$39- $28

=$11

if Break-even = fixed cost/ contribution margin per unit, then

49,000= fixed cost / 11

fixed costs = 11 x 49000

Fixed costs = 539,000.00    

                   

5 0
3 years ago
A $250,000 loan is to be amortized over 8 years, with annual end-of-year payments. Which of these statements is CORRECT? a. If t
Anarel [89]

Answer:

The answer is "Option b".

Explanation:

In this scenario, the second option, which would be the percentage within each transaction that's also interest instead of the full amount, would've been lower if the rate of interest were lower because interest-related transactions would have been higher at lower rates and conversely, as opposed to the main refunds.

7 0
3 years ago
Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory record
frez [133]

Answer:

(A) I, II, and IV only

Explanation:

The Material Requirements Planning MRP is used to calculate tha materials needed for production. It may be done by software but it can be done without any technological tool.

The most important information for MRP is about the available inventory for future production, in this way the company will know what materials are needed for future production. To provide the materials on time it is necessary to know the master schedules of production, making sure that the supplies will be ready on time for manufacturing process. Finally, the accurate Bills of materials are used as a check list to verify that there is not any pending component for the production process. Even when the MRP may include costs, it is not a vital component for the system and some companies can have MRP without including costs.

4 0
3 years ago
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