1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kitty [74]
3 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]3 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%

You might be interested in
I need help with some questions. Please, real answers only.
ss7ja [257]
What might be a consideration in deciding where to buy something MasterCard

What advertising technique involves the use of "positive words without actually really making any guarantee Endorsements
5 0
4 years ago
Read 2 more answers
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on
joja [24]

Answer:

The qualitative factor which Fuller will consider for this order is:

b. Cost of setup labor.

Explanation:

Answer:

The qualitative factor which Fuller will consider for this order is:

b. Cost of setup labor.  

B. Cost of setup Labor: It includes salaries that are been paid to all workers working as full time and part time  

While the number of wages and the number of employees wage requirements vary by cost controls, their industries and the center on achievment of their best results with possible lower labour costs.

As any  leader of the company knows the things related to it that, the most important and biggest cost of doing any sort of  business is often labor. Cost of labor setup, which may account for as 70% of almost total business costs which include wages of the employees,their benefits, payroll and all other taxes related to them.  

Any HR professionals spend only  their 15% of time managing the labor costs. Engaging new employees, hiring new and efficient workers and developing them over their course of their career are always top of mind for HR professionals.

So, the most important point here is the cost labors setup.

8 0
3 years ago
What did Goodyear report for Retained earnings at December 31, 2011?
qaws [65]
<span>the answer is
$1,024 million</span>
6 0
4 years ago
Read 2 more answers
For each user of accounting​ information, identify if the user would use financial accounting or managerial accounting.
Nady [450]

Answer:

<em>a. Investor - Financial Accounting;</em>

<em>b. Banker - Financial Accounting</em><em>;</em>

<em>c. IRS - Financial Accounting;</em>

<em>d. Manager of the business - Managerial Accounting;</em>

<em>e. Controller - Managerial Accounting;</em>

<em>f. Stockholder - Financial Accounting;</em>

<em>g. Human resource director - Managerial Accounting;</em>

<em>h. Creditor - Financial Accounting.</em>

Explanation:

Requirement A - D

<em>a. Investor - Financial Accounting </em>- Investor decides after evaluating the past performance of a company whether to invest or not. They cannot provide any upper-level decisions.

<em>b. Banker - Financial Accounting -</em> Preparing financial statements or boosting company performance is the crucial working area for a banker. They cannot make a decision.

<em>c. IRS - Financial Accounting -</em> Internal Revenue Service deals with the financial statements of an organization and not deals with the organization's decision.

<em>d. Manager of the business - Managerial Accounting -</em> When a branch of an accounting discusses how to make managerial decisions to achieve the objective with the managers or administration, it is termed as managerial accounting. The manager of a business decides what the necessary things for a company are.

Requirement E - H

<em>e. Controller - Managerial Accounting - </em>The controller of an organization directly deals with the managers regarding various managerial decisions.

<em>f. Stockholder - Financial Accounting</em> - Stockholders cannot make any decisions. They can only give their opinions to alter the situation to maximize the value of the shares.

<em>g. Human resource director - Managerial Accounting -</em> Human resource director makes recruiting-related decisions that are internal. As managerial accounting deals with internal decisions, the human resource director is under the managerial accounting category.

<em>h. Creditor - Financial Accounting -</em> Creditors can ask for early payment, but they cannot urge the mangers to make any decisions.

8 0
3 years ago
16. What size paper should you use for a legal document?
hichkok12 [17]

The answer is C.

This is a legal document because layers like longer than normal paper so they could more notes into a normal looking paper to look professional.

Best of Luck!

8 0
3 years ago
Other questions:
  • A borrower made a mortgage loan 7 years ago for $160,000 at 10.25% interest for 30 years. The loan balance is now $151,806.62 an
    5·1 answer
  • Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2
    14·1 answer
  • Using the currently accepted equation, a 70-year-old man might realistically have a maximal heart rate of ________ beats per min
    13·1 answer
  • Assume that Sunshine Realty Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine err
    11·1 answer
  • Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilot
    9·1 answer
  • U.S. Law, Title 10, USC Section 153, gives the _____ authority regarding joint force development, specifically providing authori
    8·1 answer
  • Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each.
    13·1 answer
  • Perform online research to find a car you would like to have. Find out how much it would cost to lease the vehicle, and how much
    12·2 answers
  • The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the_____
    7·1 answer
  • which situation indicates a weak internal control structure? a. the mail room clerk authorizes credit memos b. the warehouse cle
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!