Answer:
15.50%
Explanation:
The computation of the cost of retained earning is shown below:
As we know that
Price = Dividend × (1 + growth rate) ÷ (required rate of return - growth rate)
$25 = $2.50 × (1 + 0.05) ÷ (required rate of return - 5%)
$25 = $2.625 ÷ (required rate of return - 5%)
After solving the required rate of return is 15.50%
We simply applied the above formula to find out the cost of retained earning
Answer:
The current value of the stock is $3.63
Explanation:
The company's management does not expect to increase its dividend in the foreseeable future. It means that the dividend for this years (to be received after 1 years from today) is also $4.24
Future value (FV): $4.25
Rate: 17%
Present value (PV) = FV/(1+rate)^tenor
= 4.25/(1+17%) = $3.63
Answer:
The correct answer is b. Increasing a nominal quantity by an amount equal to the percentage change in a price index.
Explanation:
Indexing consists of<em> adjusting</em> prices according to the changes of a particular index. It looks to create a <em>protective shield</em> against sudden fluctiations of the indicator, when affecting one or multiple segments of an economy. Nominal quantities go up or down and are adjusted proportionally according to the index to keep the purchasing value of money stable through time.
Answer:
B. Respect the privacy of others
Explanation:
Like in many other <em>data privacy</em> dilemmas, it is often considered highly unethical to give your customer's data to third parties. Having that in mind, it is a <u>privacy breach</u> to sell customer data.
The customers would have to give their consent in order to have their data used for purposes other than those that brought their data to Franklin's company in the first place.
