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uranmaximum [27]
3 years ago
5

Jarett & son's common stock currently trades at $30.00 a share. it is expected to pay an annual divident of $1.00 a share a

the end of the year(d1 = 1.00) and the constant growth rate is 4% a yearA) What is the company's cost of common equity if all of its equity comes from retained earnings?B) If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock?
Business
1 answer:
mart [117]3 years ago
4 0

Answer and Explanation:

The computation is shown below:

a. The company cost of capital is

Cost of equity = (D1 ÷ share price)+ Dividend growth rate

= ($1 ÷ $30) + 0.04

= 0.033 +0.04

= 0.0733 or 7.33%

Now  

b. Cost of new equity is

= (D1 ÷ share price ×  (1 - flotation cost)) + Dividend growth rate

= [$1 ÷ $30 × (1 - 0.1)] + 0.04

= ($1 ÷ $30 × 0.9) + 0.04

= 1 ÷ 27 + 0.04

= 0.037 + 0.04

= 0.07704 or 7.71%

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Answer: $7200

Explanation:

From the question, we are informed that most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,700 worth of jewelry and $6,000 worth of silverware were stolen from a family.

The amount of claim that would not be covered by the insurance will be:

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= $3,700 + $3,500

= $7,200

8 0
3 years ago
When the production manager finds the average life of her battery-lifetime data, this is an example of what phase of inferential
den301095 [7]
Finding the average life of her battery lifetime data is an example of : D. Data analysis

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hope this helps
3 0
3 years ago
Read 2 more answers
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to a. making more than the customer wants or more than y
motikmotik

Answer:

d. not encouraging employee ideas or undermining their efforts.

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.

The definition of Not Utilizing Staff Talent in the Eight Wastes refers to not encouraging employee ideas or undermining their efforts.

6 0
3 years ago
To: Ellen Stanford From: Thomas Gregory [1] Proposed Agenda for November 6 Meeting Dear Ms. Stanford, [2] Please review the foll
puteri [66]

Answer:

Parts of Email:

Part 2 of the email is part of Introduction and Details as explained below.

Explanation:

Emails can be divided into six major components:

1. Subject Line: Proposed Agenda for November 6 Meeting

2. Greeting: Dear Ms. Stanford

3. Intro/Purpose: Please review the following agenda for our next shareholder meeting and recommend any changes.

4. Details: Agenda for our next shareholder meeting

• Rising stock prices

• Discussion of new investors

• Portfolios and new funding

• Introduction of new vice-president

5. Ask/Action: Please send any changes to the agenda to me by 3:00 p.m., November 3.

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8 0
3 years ago
In the year 2020, a divorced woman under age 50 collects $50,000 of alimony and child support as her sole source of income. The
NikAS [45]

The available options are:

A. No contribution can be made because the woman does not have earned income

B. A contribution of up to $6,000 is permitted, but the contribution is not tax deductible.

C. A tax deductible contribution of up to $7,000 is permitted

D. A tax deductible contribution of up to $9,000 is permitted

Answer:

No contribution can be made because the woman does not have earned income

Explanation:

Unlike in the previous years before 2019, concerning divorce agreements, alimony is now declared to be no longer deductible by the payor and at the same time is considered to be a tax-free income to the recipient. In essence, this indicates that alimony is no longer qualifies as earned income and therefore, cannot be utilized to fund an Individual Retirement Account.

Hence, in this case, since it is , year 2020, the correct answer is "No contribution can be made because the woman does not have earned income."

8 0
3 years ago
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