I would try Amazon or Ebay.
Is this a school question?
Decreasing their product mix.
If a company cannot meet their strategic goals for a product they may decide to stop the sale and production of that item all together to focus resources on better-performing goods.
Answer and Explanation:
The computation is shown below:
a. The company cost of capital is
Cost of equity = (D1 ÷ share price)+ Dividend growth rate
= ($1 ÷ $30) + 0.04
= 0.033 +0.04
= 0.0733 or 7.33%
Now
b. Cost of new equity is
= (D1 ÷ share price × (1 - flotation cost)) + Dividend growth rate
= [$1 ÷ $30 × (1 - 0.1)] + 0.04
= ($1 ÷ $30 × 0.9) + 0.04
= 1 ÷ 27 + 0.04
= 0.037 + 0.04
= 0.07704 or 7.71%
