Answer:
Cost of equity = 10.9%
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em><em> </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
D0× (1+g)/Po × (1-F) + g
Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %
DATA:
D0- 3.68
g- 5%
P=67
K- ?
Po×(1-F)= 67-3.68=$63.32
Ke = 3.68× 1.05/ 63.32 + 0.05 =0.109
Cost of equity = 0.109× 100= 10.9%
Cost of equity = 10.9%
Answer:
The Correct answer is "Public transport is an inferior good".
However, it is identified that the Public transport is an inferior good it highlighted the facts that if there should arise an occurrence of substandard great, As, the increment in income of an individual prompts to decline in the amount of demand and vice versa.
Answer:
The accrued interest is $2,520
Explanation:
The computation of accrued interest is shown below:
= (Notes payable amount) × (interest rate) × (number of months ÷ total number of months in a year)
= ($42,000) × (8%) × (9 months ÷ 12 months)
= $2,520
The 9 months is computed from April 1, 2016, to December 31, 2016
. Moreover, all the item values are to be considered in the computation part.
Answer:
If the given situation turns into a legal dispute: Option D: the Court is likely to find that this is a unilateral mistake. However, since Builders knew (or should have known) that there was a mistake, the supplier will not be held to the $3,000 quote.
Explanation:
Builders requested a bid from the supplier and while answering the bid, supplier made an error.
Unilateral mistake is the one in which only one party commits a mistake. The party that doesn't make the mistake gets to know about the mistake done by the other party. The contract is then made voidable by the mistaken party.
A voidable contract is like a formal agreement which is made between the two parties in which contract is decided to be made not enforced in case of any legal reason. It may include, if any of the party is not able to disclose a fact or a mistake, misrepresentation or any undue influence by someone on any of the parties. Thus, in the given case, court will ,likely find this as unilateral fault.
<span>In this situation coca-cola used what is called a market modification strategy. A market modification strategy is one that a company uses in order to increase use or consumption of a product or service that they offer. In this case, coca-cola was attempting to increase consumption of its product by selling it to a group that does not consume the common breakfast drink.</span>
