Answer:
The best estimate of the company’s cost of equity is 11.99%.
Explanation:
CAPM based required return = 5% + 1.1*7%
= 12.7%
Dividend model required return
35 = (1.40*1.07)/(r - 0.07)
r - 0.07 = 0.0428
r = 11.28%
The best estimate of the company’s cost of equity is the mean of two = (12.7% + 11.28%)/2
= 11.99%
Therefore, The best estimate of the company’s cost of equity is 11.99%.
Answer:
The selling price today = $28.536
Explanation:
The question states that D0 is $1.5.
To calculate price, we need to calculate Present value of future dividends along with a terminal value from the time the dividend growth is becoming constant.
The D1 growth will be 20% of D2.
The fall in dividend growth will be 5% till it reaches 5%.
- P0 = D1 / (1+r) + D2 / (1+r)² + D3 / (1+r)³ + D4 / r-g
- Where,
- r = required rate of return
- g = growth rate
Thus,
P0 = 1.5*(1.2) / (1+0.15) + 1.5*(1.2)*(1.15) / (1+0.15)² + 1.5*(1.2)*(1.15)*(1.1) / (1+0.15)³ + 1.5*(1.2)*(1.15)*(1.1)*(1.05) / (0.15 - 0.05)
P0 = $28.536
Answer:
The best answer to the question: How should the parties proceed, when talking about the buying of a house in which the buyer has already entered a contract with the seller of the property, before having an inspection performed on it, to find out that there are some issues with the property itself, would be, C: The fixes do not become part of the sales agreement.
Explanation:
To begin with, the buyer should have had the inspection done before entering an agreement, and much more signing the contract. Now that the contract is in place, and since the buyer did not have the inspection done beforehand, the terms that would have made the seller responsible for making fixes on the damaged property are not part of the contract. The buyer signed the contract without these adendums and therefore, it is no longer the seller´s responsibility, as part of the original contract, to take care of them. The buyer must abide by the original contract because he did not insist on having any such provisions placed on it that would have made the seller responsible for the fixes.
Answer:
The correct answer is letter "A": concurrent .
Explanation:
Concurrent control is adopted to regulate ongoing activities in an organization so that they can meet the company's standards. This type of control is chosen to ensure that the output will have the results expected. It implies measuring the quality of the processes at a certain point in time to determine to continue with them or not.
Answer:
Human capital
refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees
