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Stolb23 [73]
3 years ago
13

Whitewall Tire Co. just paid an annual dividend of $1.70 on its common shares.

Business
1 answer:
r-ruslan [8.4K]3 years ago
6 0

Answer:

10.59%

Explanation:

First, find next year's dividend using dividend discount model formula;

D1 = D0 (1+g)

D0 = current dividend paid = 1.70

D1 = expected next year's dividend

g = growth rate = 2.10% or 0.0210 as a decimal

therefore. D1 = 1.70 (1+0.0210)

D1 = 1.70 *1.0210

D1 = 1.7357

With the current price of $20.44,  find the cost of stock (r) ;

r = \frac{D1}{P0} + g

P0 = Current price

r = \frac{1.7357}{20.44} + 0.0210\\ \\ =0.0849 +0.0210\\ \\ =0.1059

As a percentage, the cost of stock is 10.59%

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Answer:

1) 18.4%

2) 27.20%

Explanation:

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5 0
3 years ago
Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner,
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Answer:

0.9717 per unit sold (approx)

Explanation:

Here, we are assuming 52 weeks in a year.

Contribution margin:

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= 17,322.2 ÷ 17,826.2

= $0.9717 per unit sold (approx)

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3 years ago
Kate and Bill secured a loan with a 75% loan-to-value ratio. The interest rate was 7.125% and the term was for 30 years. The fir
Volgvan

An appraised price is an evaluation of a property's fee-based totally on a given factor in time.

An appraised cost is an evaluation of a property's value based totally on a given factor in time. The evaluation is accomplished by means of a professional appraiser for the duration of the mortgage origination technique. The appraiser is normally selected by way of the lender but the appraisal is paid for by way of the borrower.

Actual property professional opinion is typically towards the idea of paying extra than a property's appraised price. Even if you make up the difference on below-appraised assets, you may have assets well worth much less than what you paid.

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When a company buys something on credit it increases account payable, and when a company sells on credit it will increase their account receivable.
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The filter that can be applied to only show clients assigned to a specific team member is the Client list lead filter. This is further explained below.

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