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Murrr4er [49]
3 years ago
15

A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $24, the most rec

ent dividend was $3 per share, and the dividend is expected to grow at a rate of 4% forever. Flotation costs for this issue are expected to be 6%. What is the required rate of return (or financing cost) in this new issue?
Business
1 answer:
bekas [8.4K]3 years ago
8 0

Answer:

17.83%

Explanation:

The computation of required rate of return is shown below:-

Required rate of return = ((Expected dividend ÷ (Current Stock price × (1 - Flotation cost as a percentage of issue price)) + Growth rate)) × 100

= ((Dividend × (1 + Growth rate)) ÷ Current Price of stock × (1 - Flotation cost as a percentage of issue price)) + Growth rate))) × 100

= ($3 × (1.04) ÷ $24 × (1 - 0.06) + 0.04) × 100

= ($3.12 ÷ $22.56 + 0.04) × 100

= (0.138297872  + 0.04) × 100

= 17.82978723

or

= 17.83%

Therefore we have applied the above formula.

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The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2014, bal
NISA [10]

Answer:

The amount of $8,707,170 of cash and cash equivalents to be reported on Eastwood Co.

Explanation:

Cash reported  December 31,2014 = Commercial savings account + Commercial checking account  + Money market fund + Petty cash fund + Commercial paper  + Currency and coin on hand

=$698,340 + $830,320 + $5,044,440  + $1,900 + $2,124,020 + $8,150

= $8,707,170

​Therefore, The amount of $8,707,170 of cash and cash equivalents to be reported on Eastwood Co.

8 0
3 years ago
Sometimes you find yourself getting off-task because your boss keeps piling on the work, and you aren't sure what to prioritize.
Reptile [31]

Answer:

B. ask you boss which stuff takes priority and then make a list to remember.

Explanation:

8 0
3 years ago
Altonland Inc., a pharmaceutical company based in the United States, generally appoints a U.S. national as the head of its forei
In-s [12.5K]

Answer: The correct answer is "the informal rules of the game".

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<u>Because despite not being an official standard, it is an informal rule that the company tends to follow because it gives good results, and is backed by the organizational culture of the company.</u>

7 0
3 years ago
What terms best refer to anything that can be bought or sold?
Savatey [412]

The terms best refer to anything that can be bought or sold

goods and services

This is further explained below.

<h3>What terms best refer to anything that can be bought or sold?</h3>

Generally, The output of an economic system consists of things like goods and services.

While services consist of activities that are carried out for the advantage of the receivers, goods are physical products that are sold to clients. Products such as autos, home appliances, and apparel are all examples of goods.

In conclusion, The terms best refer to anything that can be bought or sold

goods and sevices

Read more about goods and services

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7 0
2 years ago
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3 years ago
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