Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?
Explanation:
Answer:
b. 14.0%
Explanation:
NET INCOME
Sales $ 100.000
Net Income $ 25.000
Preferred Stock -$ 4.000
Net Income to Stockholders' equity—common $ 21.000 14%
Net Income to Stockholders $ 21.000
=========== = 14%
Stockholders' equity—common $ 150,000
Answer and Explanation:
Forecast error is a difference between Estimated data and real data, here Estimated data is referred to as forecast data.
According to rational expectations principles, expected forecast error's average always near to be zero.
Expected forecast error may be forecast or predict in future.
So, Expected forecast error will be zero (0%)
Interest-bearing checking account.
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Management is the management of an organization, such as a corporation, non-profit organization, or government agency. This is the art and science of managing company resources.
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Corporate governance is the coordination and organization of business activities. Business managers oversee operations and help employees achieve peak productivity.
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