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Verdich [7]
3 years ago
7

Pepper Inc.’s common stock currently sells for $15.00 per share, the company expects to pay $1.925 dividend in the coming year a

nd it expects the dividend to grow at a constant growth rate of 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? Do not round your intermediate calculations. Hint: Re-Rs
Business
1 answer:
dedylja [7]3 years ago
6 0

Answer:

The correct answer is 0.78%.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate the retained earning cost, then

Cost of retained earning = Dividend ÷ Price + Growth

= (1.925 × 70%) ÷ 15 + 6%

= 1.3475 ÷ 15 + 0.06

= 0.1498 or 14.98%

Now, Cost of equity = (Dividend ÷ Price (1 - Flotation cost ) + Growth

= (1.925 × 70% ) ÷ 15 (1 - 0.08) + 0.06

= (1.3475 ÷ 13.8 ) + 0.06

= 0.1576 or 15.76%

So, Exceed amount = 15.76% - 14.98% = 0.78%

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Gennadij [26K]

Answer:

The correct answer that fills the gap is: A. business.

Explanation:

The legendary company in the IT sector, IBM, which created the PCs in 1981, was baptized no less than in 1924, although its history dates back to 1911. Its acronym means International Business Machines Corp.

IBM not only invented PCs, but the data storage itself. Also other tools very common today, such as ATMs.

Despite having been the company with the greatest historical losses in the United States (8 billion dollars, as announced in January 1993), in 2011 it continued to be the number 18 company in the United States and 31 globally, according to list published by Forbes. One of his favorite slogans is THINK.

5 0
3 years ago
Aisletton, an electronic gadgets manufacturer, organizes its workforce into various departments based on the service the departm
skad [1K]

Answer:

product departmentalization.

Explanation:

product departmentalization is the internal process performed by a corporation of dividing its business activities up according to the type of goods or services produced. Product departmentalization typically groups tasks related to a particular product or product line under one senior manager who specializes in that aspect of the company's business.

5 0
3 years ago
Read 2 more answers
Receive cash from customers, $15,000. Pay cash for employee salaries, $9,000. Pay cash for rent, $3,000. Receive cash from sale
Alexeev081 [22]

Answer:

Part 1

<u>Cash Account</u>

                                                                           $

<u>Debit :</u>

Receive cash from customers                     15,000

Sale of Equipment                                         8,000

Bank Loan                                                      4,000

Totals                                                            27,000

<u>Credit :</u>

Pay cash for employee salaries                   9,000

Rent                                                                3,000

Utilities                                                            1,000

Advertising                                                     7,000

Ending Balance                                              7,000

Totals                                                            27,000  

     

Part 2

Ending Balance is $7,000

Explanation:

Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.

The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.

The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.

7 0
3 years ago
Yorketowne's city council opened a business park on the edge of the city. After five years, they had attracted two new manufactu
oee [108]

Answer:

$130,423.89

Explanation:

This is an incomplete question. Searching online, I got the complete question which is presented below.

To provide additional employment and add to its tax base from businesses, Yorketowne’s city council opened a business park on the edge of the city. After five years, they had attracted two new manufacturers and four supporting service businesses to the park. The total value of the property of all six businesses was $15,825,500. The companies paid $0.78 per $1,000 of property value each year as property tax. In addition, the businesses employed 328 people at an average salary of $36,000. Each person paid a 1 percent city income tax each year.

a. What is the total amount of taxes the city collected as a result of opening the business park?

b. In addition to the tax dollars, what other benefits might the city receive from opening the business park?

Solution A

Total amount of taxes the city collected =

Property tax paid by the companies + income tax by employees

= (Property Tax Rate*Property Value) + (Income Tax Rate*Average Salary*Number Of Employees)\\=(\frac{0.78}{1,000}*15,825,500) + (0.01*36,000*328)

= $12,343.89+$118,080

= $130,423.89 tax income per annum.

Solution B

Other benefits that might accrue to the city from opening the business park include.

  • Attraction of other businesses to the park given the success of existing businesses operating in the park.
  • Increased employment as new businesses continue to be established in the park.
  • Increased development at the edge of city as new homes and amenities are built to accommodate the employees of the city.
8 0
3 years ago
Research title related to ABM​
kow [346]

Answer:

They are: business, marketing, accounting, project management, and human resources.

Hope it helps...

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2 years ago
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