Answer:
The answer is false
Explanation:
Market price minus profit equals target cost and not target price.
Answer:
13,500
Explanation:
Outstanding shares = issued shares - Treasury shares
19,000 - 5,500 = `13,500
Shares is a method through which firms raise capital.
Authorised shares are the maximum number of shares a company can issue to investors
Outstanding shares are the total number of shares sold to investors
Treasury shares are shares that have been issued and later repurchased by the company
Issued shares are the shares that a company issues
Answer:
The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;
Total amount = Debt + Preferred stock + common equity
= 100 million + 20 million + ( 50 * 6 million)
= $420 million
<u>Proportions.</u>
Debt
= 100/420
= 24%
Preferred Stock<u> </u>
= 20/420
= 5%
Common Equity
= 300/420
= 71%
Answer:
Dividend growth rate anticipated = 14.66%
Explanation:
Using dividend growth model we have
P
= 
Where P = Current market price = $120
D
= Dividend to be paid at year end or next year = $1.37
K
= Expected return on equity = 15.8%
g = Expected growth rate
Now putting values we have
$120 = 
0.158 - g = 
0.158 - 0.0114 = g
0.1466 = g = 14.66%
Answer:
Option C is correct one.
expected return of 38 percent; standard deviation of 38 percent
Explanation:
Expected return of 38 % and Standard deviation of 38%. this will be optimum return and not an efficient frontier.
