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cricket20 [7]
3 years ago
6

A firm has just paid its annual dividend of $5.64 a share. Thereafter the dividend is expected to increase at a rate of 2% a yea

r. If the firm's stock currently sells for $60 a share, what is the cost of equity
Business
1 answer:
hammer [34]3 years ago
7 0

Answer:

11.588 %

Explanation:

The information available allows us to use the Dividend Growth Model to calculate the cost of equity as :

Cost of equity =  Expected dividend ÷ Price per share + growth rate

therefore,

Cost of equity = ($5.64 x 1.02) / $60 + 2 %

                        = 11.588 %

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Partner Airline
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between or among airlines are known as airline alliances. Through these partnerships, airlines can pool resources, add or expand partner routes, and even provide the opportunity for customers to accrue and redeem miles through one another's rewards systems.

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For the spring of 2020, I'm looking into multi-city flights from Seattle to Rome and Rome to Seattle. On Lufthansa, premium economy is not an option for the dates I'm considering. However, I can discover routes flown by Lufthansa on the United website and have the option of choosing premium economy. However, I am unable to choose seats on the United website. It informs me "On this flight, there are no available advance seat assignments on united.com. You can go to the operating airline's website for more information after completing your purchase." I am less than certain that we will truly enter premium economy and may instead wind up in ordinary economy as a result of this. Please share your insights into this kind of reservation! Thanks!

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3 0
1 year ago
Wang Company accumulates the following adjustment data at December 31. For each item, indicate (1) the type of adjustment (prepa
IRISSAK [1]

Answer:

a. Services performed but unbilled totals $600.

  • Accrued revenue
  • Accounts receivable was understated before the adjustment

b. Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.

  • Accrued expense
  • Supplies was overstated before the adjustment

c. Utility expenses of $275 are unpaid.

  • Accrued expense
  • Utilities expense was understated before the adjustment

d. Service performed of $490 collected in advance.

  • Unearned revenue
  • Revenue was overstated before the adjustment

e. Salaries of $620 are unpaid.

  • Accrued expense
  • Wages expense was understated before the adjustment

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4 0
2 years ago
Financial instruments (25) A) are created to transfer risks that are difficult to predict. B) are created to transfer risks that
DanielleElmas [232]

it should be noted that financial instruments are created to transfer risks that are difficult to predict.

<h3>What are financial instruments?</h3>

financial instruments can be regarded as contract that exist between individuals/parties which is accessing monetary value.

With these financial instrument , transfer risks in the financial domains can be predicted.

Examples of financial instrument are:

  • cheques
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Learn more about financial instrument at;

brainly.com/question/1096688

3 0
2 years ago
Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra
ivann1987 [24]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Net income = $110,000

Dividends paid = $60,000

Common stock owns = 15%

So, we can calculate the income for particular investment by using following method:

Income to be recognized = Dividends paid × Common stock owned

by putting the value, we get

= $60,000 × 15%

= $60,000 × 0.15

= $9,000

Hence, the income to be recognized on this investment is $9,000.

6 0
2 years ago
Money received for work is/are _____. wages expenses taxes mean salary
Citrus2011 [14]
Correct Answer:
Wages

Wages are the compensations or the amounts that are paid by an employee or the boss to the employer for doing some labor or work. The fourth option is Mean Salary. Mean salary is defined as the average salary of entire working population of a nation.Therefore, the answer to this question is Wages. The money received for work is wage. 
4 0
3 years ago
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