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Kitty [74]
2 years ago
7

Rossdale Co. stock currently sells for $69.35 per share and has a beta of .90. The market risk premium is 7.30 percent and the r

isk-free rate is 2.95 percent annually. The company just paid a dividend of $3.65 per share, which it has pledged to increase at an annual rate of 3.35 percent indefinitely. What is your best estimate of the company's cost of equity
Business
1 answer:
miss Akunina [59]2 years ago
5 0

Answer:

9.52%

Explanation:

Cost of equity can be determined using the capital asset pricing model

he capital asset price model: cost of equity = risk free + (beta x market risk premium )

Risk free return = return on a risk free asset

Beta is a measure of the systematic risk.  

Risk premium = market rate of return - risk free rate

2.95% + (0.90 x 7.30%) = 9.52%

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The unemployment that is caused by changes in the​ economy, such as shifts in manufacturing​ techniques, increased use of comput
slava [35]

Answer:

D. structural unemployment.

Explanation:

D

Structural unemployment is caused by changes in the​ economy, such as shifts in manufacturing​ techniques, increased use of computers and electronic​ machines, and increases in the production of services instead of​ goods.

Structural unemployment is caused by technological change.

Cyclical unemployment is caused by business cycles. In down turns, unemployment rises and falls during a boom.

Frictional unemployment is the period between when Labour leaves his job and gets another one.

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3 years ago
Kellen orders 1,000 pounds of strawberries from Lucy so he can make his famous strawberry sundaes at his ice cream store. Lucy s
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B. Rescission and Restitution

Explanation:

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3 years ago
1. Sam is preparing a speech for a small church group. He makes a list of his interests and lists all the related jobs he knows.
sineoko [7]

Answer:

Topic Building

Explanation:

Sam is at this point trying to build his topic for the speech.

It is based on this topic a speech write up will be made.

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3 years ago
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"In a Real Estate Limited Partnership, the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property
OlgaM077 [116]

Answer:

Increase interest deductions for the limited partners.

Explanation:

In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.

Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.

When a loan is refinanced at the same interest rate the borrower pays more interest.

For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.

When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.

So the general partner aims to increase the amount of interest paid.

4 0
3 years ago
Noah is in the process of getting organized. Which of the following actions should he take during this time? Check all that appl
Alekssandra [29.7K]

Answer:

B. Noah should put all of his important projects into a calendar that he looks at every day.

D. Noah should write down a list of all of the actions he needs to take so that he will have a reminder of what he needs to do when he needs to do it.

Explanation:

Getting organized means that one is putting things into a coherent order to enable them to be able to achieve the things they want to achieve more efficiently. An organized person is able to note the plans that they have, how they want to achieve such plans and the resources they will need to do so as well.

As Noah is getting organized, he should come up with a list of actions he will need to take to achieve his goals and write them down so that he is constantly reminded of them and it does not slip his mind.

A way to remember such actions is to put them into a calendar that he will look at every day. This will remind him that he has things to do and put the pressure on him to do so.

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3 years ago
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