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Rina8888 [55]
3 years ago
9

IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 4% a year for the foreseeable future. The p

rice of IBM is $110 per share. What is IBM's cost of equity capital
Business
1 answer:
jolli1 [7]3 years ago
4 0

Answer:

9.45%

Explanation:

Data provided in the question

Current year dividend = $6

Expected growth rate = 4%

Price of the IBM = $110

The computation of the cost of equity capital is shown below:

Cost of equity capital = Current year dividend ÷ price + Growth rate

                                    = $6 ÷ $110 + 4%

                                    = 9.45%

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You purchased 1,000 shares of fund ABC for $35.00 NAV per share. You elected the dividend reinvestment plan and had all dividend
Serjik [45]

Answer:

B. - 5.71%

Explanation:

Given that

Purchase price = 1000 × 35 = 35000

Selling price = 1100 × 30 = 33000

Recall that

ROI = Net profit/total investment × 100

And that

Net profit = selling price - purchase price

= 33000 - 35000

= -2000

Therefore,

ROI = -2000/35000 × 100

= - 0.05714 × 100

= - 5.71 %

Thus, total return on investment is -5.71%

3 0
3 years ago
Marcel supervises a group of paralegals serving the firm's lawyers. He gets along well with his employees, and he has created de
svet-max [94.6K]

Answer:

Task-oriented

Explanation:

Task-oriented leaders focus on getting necessary tasks done to accomplish  set objectives. These leaders are concerned with finding step-by-step solutions needed to meet set goals. The leaders will often define the roles required, put structures in place, organise necessary resources, and monitor progress towards accomplishing tasks within the team.

8 0
3 years ago
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm is
Semmy [17]

Answer:

A.$2.99

B.$1.15

Explanation:

Frantic Fast Foods

A.Computation of the earnings per share for the year 20X

Using this formula

Earnings per Share=Earnings after Taxes/Shares Outstanding

Let plug in the formula

900,000/301,000

=$2.99

The earnings per share for 20X1 will be $2.99

B. Computation of the earnings per share for the year 201X

Earnings after Taxes= 301,000 * 1.28 = 385,280

Shares Outstanding=301,000 + 32,000 = 333,000

Hence,

Earnings after Taxes/Shares Outstanding

385,280 / 333,000 = $1.15

Therefore the earnings per share for 20X1 will

be $1.15 .

5 0
3 years ago
When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in:.
Free_Kalibri [48]

When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in consumer surplus.

What is consumer surplus?

Consumer surplus occurs when a consumer pays a price that is lesser for a goods than the actual price they are willing to pay for a product.

Difference in consumer surplus occurs because Frank now has more customers and he can now sell at a price lower than the consumer would pay.

Therefore, Frank sells a pie to jean instead of sarah,when the economic value created in society is lower because of the difference in consumer surplus.

Learn more on consumer surplus here,

brainly.com/question/3209988

5 0
2 years ago
Nathen’s home office
Rom4ik [11]

Answer:

Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand of all: Nathan's Famous hot dogs, with its iconic annual eating contest. ... It remains the largest total acquisition of a U.S. company by the Chinese.

Explanation:

4 0
2 years ago
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