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
WITCHER [35]
2 years ago
13

The Shoe Outlet has paid annual dividends of $.58, $.66, $.72, and $.75 per share over the last four years, respectively. The st

ock is currently selling for $10.08 a share. What is the cost of equity? Multiple Choice 17.13 percent 18.74 percent 11.79 percent 19.53 percent 10.38 percent
Business
1 answer:
DiKsa [7]2 years ago
6 0

Answer:

A). 17.13 %

Explanation:

Given that,

Annual Dividend for the first year = $.58,

Annual Dividend for the second year = $.66

Annual Dividend for the third year = $.72

Annual Dividend for the fourth year = $.75

The current price per share = $10.08

To find;

The cost of equity = ?

Procedure:

(0.66 - 0.58)/0.58 = 0.137931034

(0.72 - 0.66)/0.66 = 0. 0909090909

(0.75 - 0.72)/0.72 = 0.0416666667

g = (0.137931034 + 0. 0909090909 + 0.0416666667)/3

= 0.0901689305

R_{e} = {(0.75 * 1.0901689305)/10.08} + 0.0901689305

= 0.17128269

∵ 17.13% is the cost of equity.

You might be interested in
Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in in
Aleks04 [339]
You didn't give us any options in your question.
4 0
2 years ago
Read 2 more answers
· what is organisation structure?
postnew [5]

Answer:

An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.

7 0
1 year ago
Read 2 more answers
Indicate whether each of the following relationships is usually a direct relationship or an inverse relationship. a. A sports te
Verdich [7]

Answer: a. Direct b. Inverse c. Inverse d. Inverse

Explanation: Let's remember what a direct and inverse relationship is.

A direct relationship is when both increases or decreases at the same time. For example in the option a. If the winning percentage of the team goes higher (Increases) you would expect that more (Increases) people goes to see them.

In the other hand, a inverse relationship is when if one increases, the other one decreases l. For example in the option b. If the temperatures go higher (Increases) then you wouldn't expect people wearing or buying sweaters, so the sales of sweaters will go down (Decreases).

You can see it in the same way for the other two options:

c. As the income of a person goes higher(Increases), that person would have the need to go to discount stores so it's visits will be less often (Decreases).

d. As higher (Increases) the prices of gasoline, less gasoline the people can buy and less (Decreases) they can drive.

7 0
2 years ago
What gives the measure​ of the overall market value of goods and services produced in the economy?
STALIN [3.7K]
The answer is c I took the test
6 0
2 years ago
Is it considered cheating to use brainly?
amid [387]

Answer: Probably, but if they explain how they got their answer then you will know how to do it next time. And you wouldn’t need to ask anymore:)

Explanation:

7 0
1 year ago
Read 2 more answers
Other questions:
  • Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. I am buying a firm with a
    9·1 answer
  • Katzev Company manufactures a personal computer designed for use in schools and markets it under its own label. Katzev has the c
    5·1 answer
  • Changes that can increase measured total factor productivity include:
    13·1 answer
  • The term development is best described as a measurement of a country's __________. A. infrastructure system B. basic resources C
    6·2 answers
  • If common equity financing is 60% of the optimal capital structure and the existing limit of internal equity is $500,000. Solve
    15·1 answer
  • Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufact
    8·1 answer
  • Dr. Elizabeth Brennan
    12·1 answer
  • A manufacturing division has an average assets of $1,800,000 and income of $720,000. The division's return on investment is
    11·1 answer
  • If, instead of selling car repair services in exchange for $100, you owned an automotive dealership and you were in the business
    12·1 answer
  • the board of directors of kate's company recently hired an independent firm to review the state of the organization's security c
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!