Answer:
-2.23%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
In first case,
The current dividend would be
= $0.85 + $0.85 × 5%
= $0.85 + $0.0425
= $0.8925
The other things would remain the same
So, the cost of common equity would be
= $0.8925 ÷ $20 + 5%
= 0.044625 + 0.05
= 9.46%
In second case,
The price would be $40
The other things would remain the same
So, the cost of common equity would be
= $0.8925 ÷ $40 + 5%
= 0.0223125 + 0.05
= 7.23%
The difference would be
= 7.23% - 9.46%
= -2.23%
NBT bank of america on Mohawk Street
The answer to this question is <span>concurrent control
Concurrent control refers to the type of control by management in order to make sure that all employees are meeting the required regulations and standard.
This type of control is used to make sure that employees will always meet company's expectation so the company could realize all of its planned goals.
</span>
Answer:
The correct answer is 35%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Weighted average contribution margin ratio by using following formula:
weighted-average contribution margin ratio = (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)
= ( 30 × 75% ) + ( 50 × 25%)
= 22.5% + 12.5%
= 35%
The price of elasticity of the product maybe considered inelastic since there is little to no responsiveness to the change in price of the product. A factor or reason can be that it is a necessity so persons still have to buy the product no matter the change in price.