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
cricket20 [7]
2 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]2 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 %

You might be interested in
Travel expenses incurred by the sales department of a manufacturing company would be classified as: a. indirect labor b. manufac
mario62 [17]

Answer:

c. a period cost

Explanation:

Option C, period cos is the correct answer because the period cost is not related to the production and manufacturing of the commodity. Rather it is the cost incurred outside the factory such as marketing expenses, travelling expenses, etc. Therefore, the option "period cost" is the correct answer.  

7 0
3 years ago
The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow
max2010maxim [7]

Answer:

I Dont know

Explanation:

sorrrrrrry I will try next time

4 0
2 years ago
On January 1, 2018, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December
RSB [31]

Answer:

$8,767.50

Explanation:

Calculation for what Legion should report as bond interest expense for the six months ended

Using this formula

Bond interest expense= Carrying Value of Bond x Effective interest rate

Let plug in the formula

Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months

Bond interest expense=$8,767.50

Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50

6 0
2 years ago
Anna is a forensic scientist who still uses the methods used by Dr. Leone Lattes. How is this MOST likely demonstrated in Anna’s
Nikolay [14]
A is the answer took the test
4 0
2 years ago
What is the gdp?
sattari [20]
C the geographical location of a business
6 0
3 years ago
Read 2 more answers
Other questions:
  • Southtown Realty has entered into agency agreements with Sara, a seller and Tom, a buyer. Tom wants to make an offer on Sara’s h
    12·1 answer
  • Accounts receivable balances are required to be reflected at net realizable value as of the balance sheet date. Use of the allow
    12·1 answer
  • The following information pertains to Eagle Co.'s Year 5 sales: Cash Sales Gross $ 80,000 Returns and allowances 4,000 Credit sa
    7·1 answer
  • " Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles
    10·1 answer
  • Sandra Stone, Vice President of International Operations for Global Apparel Corporation, was working with her subordinate, Pete
    9·1 answer
  • A nurse manager is preparing to talk to her staff about quality improvement at a staff meeting. Which statement below is a corre
    5·2 answers
  • The Reingold Hat Company uses the allowance method to account for bad debts. During 2018, the company recorded $800,000 in credi
    15·1 answer
  • Which of these statements about liquidity traps is false? Firms are unlikely to undertake investment during liquidity traps beca
    14·1 answer
  • The August 31 balance shown on the bank statement is $9,813.
    13·1 answer
  • How do you think the benefits will help the firm before they<br> engage in I.M?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!