Answer:
e. 14.60%
Explanation:
The computation of Oval's cost of new common equity is shown below:-
Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)
Dividend = $1.50 × (1 + 4%)
= $1.56
Price of stock would be the price net of flotation cost
= $16 × (1 - 8%)
= $14.72
Required rate of return
= (1.56 ÷ 14.72) + 0.04
= 14.60%
Answer:
True
Explanation:
P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.
Price earning ratio= 
Answer:
The amount allocated to goodwill at January 1, 2017, is: $16,000
Explanation:
We talk of goodwill when a company acquires another one and is the difference between the cost to purchase the business minus the fair market value of the tangible assets netted the liabilities.
In this case the fair value of the assets is:
Assets $550,000 + $40,000 - $10,000= $580,000
The book value of the assets is corrected with the fair value, in this case we correct the value of the patent.
Liabilities $300,000
porcentage acquired 30%
price paid $100,000
$100,000 - ((580,000-300,000)*30%) = $16,000
Sam has $42,000 one year after graduating. So when he graduates from college, he would have $38,000.
The answer would be:
an=4,000n+38,000
Hope this helps!
Answer:
I don't know. I think a lot of the variability in wages would be due to statistical noise.
