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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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likoan [24]

Answer:

10%

Explanation:

Value of investment in the beginning = $30,000

Value of investment at the end = $30,000 (1 + 0.08)

                                                    = $30,000 × 1.08

                                                    = $32,400

Interest paid = $15,000 × 6%

                     = $900

Rate of return:

=\frac{Value\ at\ the\ end-Value\ in\ beginning-Interest}{Total\ amount-Borrowed\ amount}\times100

=\frac{32,400-30,000-900}{30,000-15,000}\times 100

=\frac{1,500}{15,000}\times 100

      = 10%

Rate of return is 10% if the price of Telecom stock goes up by 8% during the next year.

7 0
3 years ago
Capital gains refer to profits from the sale of investments. true false
madam [21]
It is true that capital gains refer to profits from the sale of investments. 
7 0
3 years ago
Which statement below best captures the overall point and focus of the New York Times article, Document 3?
Artemon [7]

Answer:

Correct Answer:

C) The news story marks the historical event of the first black man being called up to play in the major leagues and expresses some concern over how Robinson will be treated by his major league peers.

Explanation:

<em>Option C ıs the best statement which captures the overall point and focus of the given New York Times article, Document 3.</em>

6 0
3 years ago
If you charge/plug in your phone on a Xbox will the stuff in ur camera roll on your phone be on/in the Xbox?
inysia [295]

Answer:

No.

Explanation:

You said if you charge, so it will only charge your phone. You aren't able to upload photos directly to an Xbox.

Although, if you are pc, you can upload a custom gamerpic easily.

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True or failed sales taxes are the same no mattter where you live
coldgirl [10]

Answer:

false

Explanation:

8 0
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