Answer:
-9.92%
Explanation:
P₀ = Div₁ / (Re - g)
- Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
- Re = cost of equity = ?
- P₀ = current stock price = $62.91
- g = dividend's growth rate = -11.5%
Re = (Div₁ / P₀) + g
Re = ($0.9912 / $62.91) - 11.5%
Re = 1.58% - 11.5% = -9.92%
Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.
This is true, it is a misunderstandment
A thesis statement should be clearly stated and narrowly focused. False
someone who's mad and wierd like me......
Answer: The motorcycle because you can sell it for more cash than the cash prize option. Value = $25000 (the price you can sell it for.)
Explanation:
Based on the scenario in the question, we've been given three options which are a new motorcycle, with an MSRP of $30000, or $20000 in cash.
The manufacturer's suggested retail price (MSRP) is simply the price that the producer of a product recommends ifor the product to be sold in retail stores.
Based on the scenario, the best option will be to choose the motorcycle. This is because it can sold for an amount that is not than the cash prize option of $20,000 since the motorcycle is valued at $25000.
