The primary concern of any _________ should be to ensure the text is legiable

Angell Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following dat

DIA [1.3K]

Answer:

Option (D) is correct.

Explanation:

Given that,

Dividend, D0 =$1.20

Price, P0 = $50.00

Growth rate, g = 6% (constant)

Based on the DCF approach, then

Cost of Equity:

= [D0 × (1 + g) ÷ P0] + g

= [(1.20 × (1 + 0.06)) ÷ 50] + 0.06

= (1.272 ÷ 50) + 0.06

= 0.02544 + 0.06

= 0.08544 or 8.54%

Hence, the cost of equity from retained earnings is 8.54%.

3 0

3 years ago

What are Mormons? (I just want to know what people think)

Sliva [168]

Mormons are a member of the Church of Jesus Christ of Latter-day Saints, a religion founded in the US in 1830 by Joseph Smith, Jr.

7 0

3 years ago

Read 2 more answers

Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and

alisha [4.7K]

Answer:

The correct word for the blank space is: public.

Explanation:

A public corporation has sold stock through an Initial Public Offering (IPO) to the public and that stock is currently traded on a public stock exchange or the Over-The-Counter (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.

5 0

4 years ago

he income statement for Electronic Wonders reports net sales of $91,758 million and cost of goods sold of $69,278 million. An ex

Anna71 [15]

Answer:

Cash received from customers is $90,025 million

Cash paid to suppliers is $72,128 million

Explanation:

Cash received from customers is the net sales of $91,758 million minus the increase in accounts receivable since that is the portion of revenue yet to be received.

cash received from customers=$91,758 million-$1,733 million=$90,025 million

cash paid to suppliers is the cost of goods sold of $69,278 million plus the increase in inventory as well as the increase in accounts payable

cash paid to suppliers=$69,278 million+$883 million+$1,967 million=$72,128 million

4 0

3 years ago

Consider the following simplified balance sheet of a commercial bank: ASSETS LIABILITIES Vault cash $200 $3500 Deposits Deposits

andrezito [222]

Answer:

Check the following calculations

Explanation:

(a)

Actual Reserves = Vault cash + Deposits at the Federal Reserve

Actual Reserves = $200 + $300

Actual Reserves = $500

The actual reserves are $500.

Calculate Required Reserves -

Required Reserves = Deposits * Required reserve ratio

Required Reserves = $3500 * 0.10 = $350

The required reserves are $350.

Calculate Excess Reserves -

Excess reserves = Actual reserves - Required Reserves

Excess reserves = $500 - $350 = $150

The Excess reserves are $150.

(b)

A bank can increase the amount of its loan by the amount of excess reserves it held.

This bank has excess reserves of $150.

So, this bank can increase its loans by $150.

(c)

Calculate Money multiplier -

Money multiplier = 1/Required reserve ratio = 1/0.10 = 10

The money multiplier is equal to 10.

(d)

Calculate total expansion of loan by entire banking system -

Total expansion = Increase in loan by individual bank * Money multiplier

Total expansion = $150 * 10 = $1,500

The entire banking system can expand their loans by $1,500.

(e)

The new wealth directly created from this expansion of deposits is equal to the quantum of expansion in deposits.

The deposits has expanded by $1,500.

So, new wealth directly created from this expansion of deposits is $1,500.

5 0

3 years ago