1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sergio039 [100]
3 years ago
11

Return to questionItem 1Item 1 Judy's Boutique just paid an annual dividend of $3.01 on its common stock. The firm increases its

dividend by 3.70 percent annually. What is the company's cost of equity if the current stock price is $41.08 per share
Business
1 answer:
lys-0071 [83]3 years ago
3 0

Answer:

Cost of Equity = 11.30%

Explanation:

Computation Cost for Equity

Using Gordon Model

Market Price = [Dividend × (1 + Growth Rate )] / (Cost of Equity - Growth Rate)

41.08 = [$3.01 × (1 + 0.037)] / (Cost of Equity - 0.037)

41.08 = [$3.01 × (1.037)] / (Cost of Equity - 0.037)

Cost of Equity - 0.037 = $3.12 / 41.08

Cost of Equity - 0.037 = $0.076

Cost of Equity = 0.076 + 0.037

Cost of Equity = 0.1130

Cost of Equity = 11.30%

You might be interested in
Gary, a new salesperson for a reputed cellphone manufacturer, meets the owner of a transport company that employs 50,000 people
qaws [65]

Answer:

Option B. It is unrealistic

Explanation:

The reason is that the people have different likes which means we will never see 100 percent acceptance from the customers which might in the way of rejecting the offer of Gary. So the assumption that 50,000 cab drivers will purchase its product is truly optimistic which in other words is unrealistic assumption. So the option B is correct.

Option A is incorrect because the assumption is less qualitative as it doesn't relies on realistic assumption.

The cab drivers sales are relevant here but the sales assumption was unrealistic (Highly optimistic assumption) so the option C and D are incorrect.

Option E is also incorrect because the sales to cab drivers can be measure by initially directly selling 1000 cell phone to 1000 cab drivers which will give an actual idea of sales units expected, which means it is measurable.

6 0
3 years ago
2. Now, find out what type of business it actually is. If you chose a small business, it is likely to be a sole proprietorship o
inessss [21]
Аоуздсьалкшмвжужсьмлмадщалаалаллвлвшашаклклкл :) шазлвовшуьыла лвждуыон вол о о лашащущвщудулшвлсшылылышыйьйвашшша
8 0
3 years ago
What is the correct answer Even when competitive firms are unable to calculate marginal revenue product directly,
Aleks04 [339]

Answer: The corrects answers are "C) the pressures of competition in the labor market" and A) will push wage rates toward the marginal revenue product of labor.".

Explanation: Because the correct and complete statement would be: Even when competitive companies cannot directly calculate the product of marginal income, the pressures of competition in the labor market will push wage rates towards the product of marginal income from labor.

Making it clear that the strong pressures that are the product of competition in the labor market pushed wage rates towards the product of marginal income.

8 0
3 years ago
Explain six Differences between private and public company​
elena-s [515]
<h3>Question:</h3>

•explain six Differences between private and public company.

Answer:

•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.

Explanation:

#Let's Study

#I Hope It's Help

#Keep On Learning

#Carry On Learning

6 0
2 years ago
Chelsea, Inc. uses the job costing method and uses direct labor hours as the allocation base. In 2016, the total estimated and a
REY [17]

Answer:

3. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job

Explanation:

3. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job

The predetermined overhead rate is used to apply manufacturing overhead costs to production jobs. the quantity of a cost driver required by a particular job is multiplied by a predetermined overhead rate to determine the amount of overhead cost applied to the job.

An estimate is made of

  1. the amount of manufacturing over head that will be incurred during a specific period of time and
  2. the amount of the cost driver ( or activity base) that will be used or incurred during the same time period. the predetermined overhead rate is computed as follows

Predetermined Overhead Rate= Budgeted Manufacturing Overhead Cost/ Budgeted amount of cost driver

The predetermined overhead rate is used to apply manufacturing overhead costs to production jobs. The quantity of the cost driver ( or activity base ) required by a particular job is multiplied by the predetermined overhead rate to determine the amount of overhead cost applied to the job.

6 0
3 years ago
Other questions:
  • Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has no preferr
    5·1 answer
  • In november 2010 the labor force in siouxtown, was 14,800. there were 14,483 persons employed. the local unemployment rate:
    10·1 answer
  • an assessment made against a property to pay for public improvement by which the assessed property is supposed to be especially
    10·1 answer
  • Cathy's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cathy's enters into an agreem
    15·1 answer
  • Which of the following countries will be better off in the long​ run?
    15·1 answer
  • Grant Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books,
    13·1 answer
  • What are the characteristics of successful budgets? What can you do to cultivate these successful characteristics in your own mo
    11·1 answer
  • Cloud Storage Solutions works closely with customers showing them early versions of its software and interface and then quickly
    10·1 answer
  • Eviyan recently received a copy of his performance review report. During the review, his manager took notes regarding his perfor
    9·1 answer
  • Drag each label to the correct category. the economy of a country has been growing at an annual rate of 8%. determine the causes
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!