Answer:
Option (D) is correct.
Explanation:
Given that,
Dividend, D0 =$1.20
Price, P0 = $50.00
Growth rate, g = 6% (constant)
Based on the DCF approach, then
Cost of Equity:
= [D0 × (1 + g) ÷ P0] + g
= [(1.20 × (1 + 0.06)) ÷ 50] + 0.06
= (1.272 ÷ 50) + 0.06
= 0.02544 + 0.06
= 0.08544 or 8.54%
Hence, the cost of equity from retained earnings is 8.54%.
Answer:
The journal entry to record the issuance of new stocks is:
Dr Cash 164,800
Cr Common stock 72,100
Cr Additional paid in capital in excess of par value 92,700
When you issue new stocks, the common stock account increases by par value (= 10,300 stocks x $7). Any money obtained over par value must be recorded under the additional paid in capital account (= 10,300 x $9).
"Ecotourism" is the one way among the following choices that are given that <span>economies in southern and Eastern Africa are overcoming the economic challenges. The correct option among all the options that are given in the question is the third option or option "c". I hope the answer has helped you.</span>
<span>A strategy that is preferred by an individual regardless of an opponent's decision is called: dominant strategy. regardless of what any other players do, the strategy earns a player a larger payoff than any other. If one strategy is dominant, than all others are dominated.</span>
