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kobusy [5.1K]
2 years ago
12

The Sisyphean Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at

the end of the year and the Sisyphean Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to
Business
1 answer:
coldgirl [10]2 years ago
6 0

Answer:

0.98%

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

the growth rate can be determined from the above equation

$25.50 = $2.8 / ( 0.1 -g)

Multiply both sides of the equation by 0.1 - g

$25.50( 0.1 -g) = $2.8

Divide both sides by  $25.50

0.1 - g = 0.1098

g = 0.1 -  0.1098

g = - 0.0098

g = -0.98%

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Answer:

The percentage rate of growth from 2010 to 2011 is the 1237.3%

Explanation:

The percentage rate or growth for online advertising spend in 2011 compared to 2010 is obtained when calculating the following operations:

1. You must know what is the base figure you want to use to determine the percentage growth. In this case $5.9 Billion is the base figure you will use.

2. You want to know what is the figure with which you will determine the final growth. In this case is $73 billion.

3. You replace the values in the following formula:

percentage rate or growth =(( <u>   Final growth figure   </u> )  ) x 100

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percentage rate or growth =(( <u>  73   </u> )  ) x 100

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percentage rate or growth = 12.3728 x 100

percentage rate or growth = 1237.28

4. As you want to round your answer to one percentage place, then you round to .28 to .3 that is the next higher decimal number.

percentage rate or growth = 1237.3%

6 0
3 years ago
10 POINTS NEED HELP Explain why you should search your name online before actively seeking employment.
lyudmila [28]

Answer:

By claiming your web presence, you're protected from other people, with the same name, claiming it before you. You also gain control over how you're perceived online, and thus what employers find out about you when they conduct their search

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2 years ago
Admire County Bank agrees to lend Sheridan Brick Company $594000 on January 1. Sheridan Brick Company signs a $594000, 8%, 9-mon
Akimi4 [234]

Answer:

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Explanation:

Notes payable = $594,000

Months passed till September = 9

Interest on notes accrued for 9 months = (594,000*8%*9/12) = $35,640

                        Adjusting Entry

Journal Entry                          Debit        Credit

Interest Expenses                $35,640

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Lein's net income is $200,000 and its operating cash flows are $240,000. The company reports total assets of $1.6 million and $1
yarga [219]

Answer:

14.1%

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