Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
B. the cost of the business owner’s time and labor paying for gas for a company vehicle
Explanation:
Explicit cost are known as actual costs. They are costs incurred in the running of a business or in the production process . They are usually reported in the financial statements.
Implicit costs are opportunity costs.
The multiplier applies to the investment, net exports and government spending.
<h3>What is a
multiplier?</h3>
This refers to an economic factor that of increased, it can causes an increases in many other related economic variables.
Hence, in economics, its applies to the investment, net exports and government spending.
Therefore, the Option A is correct.
Read more about multiplier
<em>brainly.com/question/19549086</em>
#SPJ1
Answer:
A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
The correct option is B.
Explanation:
A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.
Therefore, the correct option is B.
