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
andrew11 [14]
3 years ago
8

NoGrowth Industries presently pays an annual dividend of $ 1.50 per share and it is expected that these dividend payments will c

ontinue indefinitely. If​ NoGrowth's equity cost of capital is 12​%, then the value of a share of​ NoGrowth's stock is closest​ to:
Business
1 answer:
enyata [817]3 years ago
4 0

Answer:

$12.5

Explanation:

Given that,

Annual dividend paid = $1.50 per share

Equity cost of capital = 12​%

The value of a share of​ NoGrowth's stock is determined by dividing the annual dividend paid by the equity cost of capital of the firm.

Value of share:

= Annual dividend paid ÷ Equity cost of capital

= $1.50 per share ÷ 0.12

= $12.5

Therefore, the value of a share of​ NoGrowth's stock is closest​ to $12.50.

You might be interested in
ZZZ Corporation is issuing Common Stocks that are expected to pay $14 dividend per year and this company is expected to grow at
elena-14-01-66 [18.8K]

Answer:

The pure price per share of common stock issued by ZZZ is $175

Explanation:

According to the given data we have the following:

Expected dividend next year=D1=$14

Growth rate=g=1%

Expected rate of return=r=9%

To calculate the pure price per share of common stock issued by ZZZ Corporation Pure price of share will be equal to PV of all future dividends.

Therefore, Pure price per share=D1/(r-g)

Pure price per share= $14/(9%-1%)=$175

7 0
4 years ago
LL Incorporated's currently outstanding 7% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at
Hitman42 [59]

Answer:

The after-tax cost of debt of LL Incorporated  rounded to decimal places is 9.80%

Explanation:

First and foremost ,the before tax cost of debt is the yield to maturity of 14%

Having determined the before-tax cost of debt,the after-tax cost of debt is the before-tax cost of debt adjusted for marginal tax rate of 30% as computed thus:

after-tax cost of debt=before-tax cost of debt*(1-t)

the t is the tax rate of 30% which is also 0.3

after tax cost of debt=14%*(1-0.3)

                                  =14%*0.7=9.80%

6 0
3 years ago
Brady corp. is considering the purchase of a piece of equipment that costs $20,000. projected net annual cash flows over the pro
katovenus [111]

Answer:

B

Explanation:

Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.

It is expressed in years and fraction of years.

Initial investment    20,000

Year 1                                                 3000               17000

Year 2                                                 8000               9000

Year 3                                                 15,000

9000/15000= 0.6 years

The payback period = 2.6 years

5 0
4 years ago
Misleading advertising material created to look like regular news stories or social media is known as _____
Andrei [34K]

Answer:

B. Native advertising

Explanation:

A company wants to measure the share of customer as it is the indicator of brand preference, customer loyalty, and customer lifetime value.  

Companies should open themselves to criticism by being active on social media because rather than taking it as negative, companies can take it as an opportunity to analyze and evaluate their performance.

No, it is not ethical to observe shoppers for market research without their knowledge and permission.

 

Step-by-step explanation

Native advertising refers to the kind of advertisement in which the content exactly matches the platform on which it appears and displayed. Sometimes it appears in the form of editorial content which is referred to as advertorial, video or article. These kinds of ads make it difficult for consumers to understand the right content as it blends the correct content into the content of the platform. In native advertising, misleading content is created to look like regular stories by using ambiguous terms like sponsored or branded.  

 

The unified data layer refers to when an organization merges its complex and fragmented data into one central view. It provides a clearer and complete picture of the firm's data. Marketing analytics strives to establish a unified data layer so that all data is kept in a centralized place.  

 

Share of customer is defined as the part of the customer's purchasing that the company gets. In other words, it indicates how much a customer is spending on a company's product or service. A company wants to measure the share of customer because:

It is the indicator of brand preference that companies can use to evaluate their products and services.

It shows how loyal a customer is towards the company.  

It indicates how quickly a product or service gains popularity and acceptance in the market.

It indicated an organization's customer lifetime value.  

 

Companies should open themselves to criticism by being active on social media because rather than taking it as negative, companies can take it as an opportunity to analyze and evaluate their performance. Following are the ways by which companies can appreciate criticism on social media and take benefit from it:

Turn a negative comment into a positive one.

Allow people to criticize.

Thank the people who criticize

Learn and improve from the criticism

 

No, it is not ethical to observe shoppers for market research without their knowledge and permission. It is an act of deception that means to mislead someone or hide the truth for personal gain or advantage. In market research, deceiving someone is dishonesty on the part of the researcher as the shopper feels uninformed about the research.

8 0
3 years ago
Read 2 more answers
Types of bonds
aliina [53]

Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. A. The New York City government

3. B. Municipal bonds

4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments

5. B. Treasury bonds

Explanation:

1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.

2. The City of New York issued to bonds in question so it is a New York City Government bond.

3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.

4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.

5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.

6 0
3 years ago
Other questions:
  • U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been forming alliances as a means to ente
    7·1 answer
  • Under the conformity rule, companies who use the _____ method for tax reporting, are required by the IRS to also use it in their
    8·2 answers
  • Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stoc
    5·1 answer
  • Max Weber argued that the ascetic principles embedded in _____ do not encourage entrepreneurial activity in pursuit of wealth cr
    13·1 answer
  • Under Auditing Standards, which of the following would be classified as an error? Multiple Choice Misappropriation of assets for
    15·2 answers
  • Travis International has a one-time expense of $1.13 million that must be pald two years from today. The firm can earn 4.3 perce
    6·1 answer
  • Whole Foods Stores is built on the core values of integrity, employee empowerment, and providing high-quality products to its cu
    15·1 answer
  • Why is it important for a charity to have a mission statement? (Any kind of answer will do :) )
    7·1 answer
  • Coronado Family Instruments makes cellos. During the past year, the company made 6,370 cellos even though the budget planned for
    6·1 answer
  • John House has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6 percent per year. What is the remaining
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!