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forsale [732]
2 years ago
13

Electricity for All (EFA) is preparing for their Initial Public Equity Offering (IPO). Being in a highly regulated industry, and

with no plans for expanding, EFA plans to payout all of its earnings as dividends that are expected to the be same. If the expected rate of return on its equity is 13% and a fair IPO price is $145 per share, what is EFA's dividend per share
Business
1 answer:
kirza4 [7]2 years ago
3 0

Answer:

the dividend per share is $18.85 per share

Explanation:

The computation of the dividend per share is shown below:

We now that

price per share = Dividend ÷ (required rate of return - growth rate)

$145 = Dividend ÷ (13% - 0%)

So, the dividend is

= $145 × 13%

= $18.85 per share

Hence, the dividend per share is $18.85 per share

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If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $
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Answer:

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The accounting equation gives the relationship between all the items that make up the balance sheet. These are the assets, liabilities and owner's equity.

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