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Helen [10]
3 years ago
7

Brevik Builders has an expected ROE of 25%. Its dividend growth rate will be __________ if it follows a policy of paying 30% of

earnings in the form of dividends. A. 5% B. 15% C. 17.5% D. 45%
Business
1 answer:
Tems11 [23]3 years ago
6 0

Answer: C. 17.5%

Explanation:

The Return on Equity can be calculated by the formula;

ROE = Growth rate / (1 - dividend payout ratio)

25% = Growth rate / ( 1 - 30%)

Growth rate = 25% * 70%

Growth rate = 17.5%

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Tedd E. Bear has an annual salary of $48,000 with no other loans outstanding. Using the 25% guideline from class and with a 20%
Kobotan [32]

Answer:

The total loan value would be of $261,825

Explanation:

In order to calculate how expensive of a home can Tedd purchase using a 4%, 30 year mortgage we would have to calculate first the amount of annual payments as follows:

amount of annual payments = $48,000*0.25 = $12,000

PMT = 12,000/12 = 1000

FV = 0

rate = 4%/12

N = 30*12

Hence, use FV function in Excel  amount after down payment = $209,461.24

this represents 80% of the loan , so total loan value = $209,461.24/0.8 = $261,825

The total loan value would be of $261,825

3 0
3 years ago
One disadvantage of the BYOD strategy is the potential for __________. Group of answer choices cost savings increased flexibilit
topjm [15]

The Potential<u> </u><u>Privacy and Security Issues</u> is a major flaw of the BYOD Strategy.

<h3>What is the BYOD Strategy?</h3>

BYOD a strategy in telecommunications security that allows business partner and workers to use their own devices to access the company's network, applications, and access company information.

Whilst it is cost savings in terms of hardware and provides convenience, it exposes the company to a lot of insecurity.

See the link below for more about the BYOD Strategy:

brainly.com/question/7229227

5 0
2 years ago
Four finalists have been selected for a job as a travel agent. Which candidate will most likely get the job?
Svetllana [295]

Answer:

a

Explanation:

5 0
3 years ago
You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c
ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

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8 0
3 years ago
the current price of a stock is 200 if a coll option on this stock has a strike price of 201 the call is
PSYCHO15rus [73]

The call in this scenario is known as Out of the money (OTM).

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Hence, the call in this scenario is known as Out of the money (OTM)

Read more about Out of the money (OTM):

<em>brainly.com/question/15684431</em>

6 0
2 years ago
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