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
finlep [7]
3 years ago
6

You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You

obtained the following data: D1 = $1.25; P0 = $27.50; gL = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? a. 9.44% b. 9.84% c. 9.06% d. 10.23% e. 10.64%
Business
1 answer:
lukranit [14]3 years ago
4 0

Answer:

d

Explanation:

by looking at the prices ,answer d is my estimated answer,im not a finance intern

You might be interested in
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result
Ira Lisetskai [31]

Answer:

the coefficient of elasticity is 0.5. Thus, demand is inelastic.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Price elasticity = 2/4 = 0.5

Because demand is less than1, big g has an inelastic demand.

5 0
2 years ago
What is the difference between a monopolistically competitive demand curve and a perfectly competitive demand curve
shtirl [24]
The demand curve for a perfectly competitive firm is completely elastic and a horizontal line. Monopolistically competitive demand curve is downward sloping and is more elastic than monopoly because there are more substitutes.
4 0
2 years ago
Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at D
denis-greek [22]

Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

= 10% * 3,500,000

= $350,000

Principal repayment = 569,509 - 350,000

= $219,509

a.

Date                  Account Titles and Explanation        Debit                 Credit

Dec, 31 2020   Cash                                                   $569,609

                         Mortgage Payment                                                    $569,609

Date                  Account Titles and Explanation           Debit             Credit

Dec, 31 2021     Interest Expense                                $350,000

                           Mortgage Payable                              $219,509

                           Cash                                                                             $569,609

7 0
3 years ago
What is first step in developing a knowledge management system
Elza [17]
The first step is determining what knowledge is most important. the control function involves measuring performance relative to the planned objectives and standards, rewarding people for well work done, and then taking corrective action when necessary.

hope this helps :)
5 0
3 years ago
How much is Donald Trump worth?
olga nikolaevna [1]
Donald Trump is worth 4 billion US dollars. I hope it helps
6 0
3 years ago
Read 2 more answers
Other questions:
  • When Abu went to open a bank account at First National Bank, he was greeted by a friendly account representative, who explained
    12·1 answer
  • The ability to use logic and sound judgment to make decisions based on available information to complete the mission or task is
    10·1 answer
  • A common error the auditor may find during the audit of property, plant, and equipment is that the client neglected to make a jo
    8·1 answer
  • Is this correct? How do I do this?!
    9·1 answer
  • Your text discusses several challenges facing managers today. As Cook continues to grow Apple, he is likely to encounter which o
    13·1 answer
  • You would like to combine a risky stock with a beta of 1.87 with U.S. Treasury bills in such a way that the risk level of the po
    14·1 answer
  • Paul, a manager at a logistics company. Wants to have Emma, a temporary worker, handle customers’ queries. Paul’s colleague. Ali
    10·1 answer
  • Harold Manufacturing produces denim clothing. This year, it produced 5,200 denim jackets at a manufacturing cost of $42.00 each.
    15·1 answer
  • Ursa Major Solar uses Opportunity to track sales of solar energy products. The company has two separate sales teams that focus o
    8·1 answer
  • As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider i
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!