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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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Assume an indifference map with other goods on the vertical axis and health on the horizontal axis. The government provides fami
Savatey [412]

Answer:

C. have a zero slope up to $400 and then have a negative slope.

Explanation:

Here in the attached diagram

H denotes the individual income

H = Services of the healthcare

G = Other goods

As it can be seen that the ABC is the budget line and the budget line is horizontal till $400 i.e. zero slope and afterwards it would be downward sloping i.e. negative slope

In the case when the income is fully spend on the other goods so an individual after that can consume $400 due to which the budget line could be horizontal and become parallel to the axis

Therefore the correct option is C.

6 0
2 years ago
What is marketing myopia? What is short term and long term implications for business in this situation?
Marizza181 [45]

Answer:

you could easily look that up

Explanation:

7 0
2 years ago
A balanced diet contains all the ingredients needed to maintain homeostasis. Many important compounds in the body contain nitrog
Tems11 [23]

Answer:

b. positive nitrogen balance  

Explanation:

Positive nitrogen balance -

The element nitrogen is the main component of the amino acids , which is the building block of the proteins .

The positive nitrogen balance means the growth period ,  pregnancy , tissue repair , hypothyroidism . According to which the intake of the nitrogen into the body is more than the loss of the nitrogen from the body . Therefore , there is increase in the protein in the body .

3 0
3 years ago
TMC​, ​Inc., dominates the​ snack-food industry with its Salty Chip brand. Assume that TMC purchased Red River Chips Company for
ad-work [718]

Answer:

a. $4.4 million

Explanation:

a.  For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = The market value of Red River Chips​' assets - the market value of liabilities

= $7 million - $6.2 million

= $0.8 million

And, the purchase value of Red River Chips for cash is $5.2 million

So, the goodwill would be

= $5.2 million - $0.8 million

= $4.4 million

b. Goodwill is an intangible asset that is recorded in the asset side of the balance sheet. It is used for impairment tests annually. Since the fair value is less than the carrying value so the journal entry would be

Loss on impairment A/c Dr XXXXX

            To Goodwill A/c                   XXXXX

(Being loss on impairment is recorded)

6 0
3 years ago
A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.
blagie [28]

Answer:

Plant B

Explanation:

Total Demand = 9000000

Total Cost = Fix Cost + Variable Cost

Location A

Variable Cost = 9000000*0.3 = 2700000

Fix Cost                                      = 4000000

Total Cost                                  = 6700000

Location B

Variable Cost = 9000000*0.34 = 3060000  

Fix Cost                                      =  3600000

Total Cost                                  = 6660000

Plant B is feasible because it will Save $40000

7 0
3 years ago
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