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AleksandrR [38]
3 years ago
5

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan'

s common stock currently sells for $24.50 per share; its last dividend was $1.80; and it will pay a $1.89 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity
Business
1 answer:
emmasim [6.3K]3 years ago
6 0

Answer:

12.71%

Explanation:

The computation of the cost of common equity using the DCF approach is shown below:

As we know that

Cost of common equity = Current year dividend ÷ Current price of the stock + growth rate

= $1.89 ÷ $24.50 + 0.05

= 0.0771 + 0.05

= 12.71%

We simply applied the above formula so that the cost of common equity could arrive

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Elenna [48]
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
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It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
6 0
3 years ago
¿Cómo pueden reorganizar sus gastos sin disminuir su bienestar y ahorrar dinero a partir de la información presentada? ¿Qué estr
EastWind [94]

Answer:

¡Quizás no gaste tanto en cosas que son deseos y se centre en las necesidades!

Explanation:

4 0
2 years ago
Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board
Schach [20]

Answer:

c. $110,000

Explanation:

The computation of profit (loss) from Option One is shown below:-

Profit (loss) from Option One =  Sold unit × (Cut the price - Variable cost) - Fixed cost

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= $210,000 - $100,000

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Therefore for computing the profit (loss) from Option One we simply applied the above formula.

4 0
3 years ago
Someone answer this question and give me the right answer please
ohaa [14]

As far as I remember the four stages or steps in production planning and control are:  

  1. Routing,
  2. Scheduling,
  3. Dispatching, and
  4. Follow-up.

to me, it seems to be part of the <u>scheduling </u>step.

Good luck on your exam

4 0
2 years ago
Tektron Industries has Beginning and Ending Raw Materials Inventories of $32,000 and $40,000, respectively. Direct Materials use
ch4aika [34]

Answer:

$138,000

Explanation:

The computation of the cost of Raw Materials Purchased is shown below:

= Direct materials used + ending direct material inventory - beginning direct material inventory

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Simply we added the  ending direct material inventory and deduct the beginning direct material inventory  to the direct material used so that the accurate amount can come

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3 years ago
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