1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amid [387]
3 years ago
14

Krell Industries has a share price of $ 22.77 today. If Krell is expected to pay a dividend of $ 1.09 this year and its stock pr

ice is expected to grow to $ 24.33 at the end of the​ year, what is​ Krell's dividend yield and equity cost of​ capital?
Business
1 answer:
hoa [83]3 years ago
3 0

Answer:

Dividend yield is 4.79%

Cost of equity is 11.64%

Explanation:

The dividend yield on Krell Industries share price is the dividend of $1.09 divided by the price of the share today of $22.77

dividend yield=$1.09/$22.77=4.79%

The equity cost of capital can be calculated from the share price formula given below by changing the subject of the formula to cost of equity,r.

stock price=Do*(1+g)/r-g

Do is the dividend  paid this year of $1.09

g is the dividend growth of dividend which is computed thus:

g=share price at end of the year-share price now/share price now

g=($24.33-$22.77)/$22.77=6.85%

r is the unknown

stock price is $24.33

24.33=1.09*(1+6.85%)/(r-6.85%)

24.33=1.164665 /r-6.85%

r=(1.164665 /24.33)+6.85%

r=11.64%

You might be interested in
In the aggregate expenditures model, it is assumed that: a.gross investment (I), government purchases (G), and net exports (NX)
tiny-mole [99]

Answer:

The Correct Option is "B"

Explanation:

Total consumption model was created accordingly of traditional model. It shows the connection between the GDP and arranged spending. The condition of consumption model is as per the following:  

Y = C + I + G + NX  

Where, Y is the genuine GDP, C is Consumption, I Refers to net investment, G is government buys and NX is net ex[port.  

The total use model accept that gross investment (I), government buys (G), and net export (NX) are independent to of genuine GDP (Y) as they don't depend on salary of the economy.

3 0
4 years ago
Fulkerson offered to sell some lots in a development in Colorado to Gilkey at what Fulkerson said was a steal. Fulkerson told Gi
Juliette [100K]

Answer:

I RLLY NEED THESE POINTS IM SO SORRY!

Explanation:

3 0
3 years ago
Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:
omeli [17]

Answer:

D. under no circumstances

Explanation:

An investment adviser uses his investment knowledge to guide his client with respect to investing in stocks and other securities so as to maximize client's gain.

In return for his services, an investment adviser charges a certain fee from the clients.

As per the Uniform Securities Act, an investment adviser is prohibited from sharing the profits of the client which could be in the form of any dividend/interest receipts or capital appreciation.

Thus, under no circumstances, an investment adviser is permitted to share profits of the client.

6 0
3 years ago
Read 2 more answers
Difference between private and public company
djyliett [7]

<span>The difference between a privately-held and public company is that the owners of the private company are the company’s founders or a group of private investors while in the public company, the company has undergone an initial public offering that means the company sold a portion of its shares to the public. The management of a public company is answerable to the shareholders as opposed to the private company. A public company sells the shares of stock and is listed in the stock exchange while a private company is unlisted. </span>

6 0
3 years ago
Which cause of poverty would explain why low-skilled workers are hired when the economy is expanding but are the first to be lai
4vir4ik [10]

Lack of education and degree among these individuals. 

These type of workers are exposed only in physical labor which sometimes lack mental exertion. Intellectual skills are also required by most employers which most people who are unfortunate are not able to attain. Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
5 0
3 years ago
Read 2 more answers
Other questions:
  • Your company is experiencing an increase in malware incidents. Your manager is asking for advice on how best to verify that comp
    12·1 answer
  • Use the following information in answering questions 1 - 9. Assume persons of type 1 value quality level z and the product itsel
    7·1 answer
  • Labor unions and businesses in the heavy equipment industry have asked the u.s. congress to place a tax on imported equipment in
    7·1 answer
  • Identical products, as well as a large number of buyers and sellers, are characteristics of a__________
    6·1 answer
  • Prepare the December 31 adjusting entries for the following transactions with JE explanations. 1. Fees accrued but not billed, $
    7·1 answer
  • Please add me on here i need friends please
    13·2 answers
  • R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is
    8·1 answer
  • Select the correct answer.
    7·2 answers
  • Which is an example of a pun that could be included in a book about space?
    6·1 answer
  • Which company is best for Barrie Insulation?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!