Answer:
8%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
where,
Current year dividend is $2
Price is $40
And, the growth rate is 3%
Now put these values to the above formula
So, the cost of equity would equal to
= $2 ÷ $40 + 3%
= 0.05+ 0.03
= 8%
I believe the answer is: Capitalism
In capitalism, the economy is designed in a way to give as much freedom as it can to the private sectors in term of resource allocation and market competition. In this system, the government's role limited to maintaining regulation that prevent private organizations from cheating off one another.
When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
Given that the treasury stock is purchased for an amount greater than its par.
We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.
Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.
Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
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Answer:
d. Evaluate segment attractiveness
Explanation:
The STP process helps to find your customers and decide the best way to target them. The step of the process that develops descriptions of the different segments is evaluate segment attractiveness as in this step the description of the segments along with market information and research results are generated to evaluate each segment.
William will pay a total of $750 out of pocket for both cars to be fixed.
The other car is covered by the property damage portion of his insurance, so it is covered 100% by the insurance company and there is no deductible or amount that William needs to pay. William’s car will be covered by the collision portion of his insurance. He is responsible for paying the $750 deductible and the insurance company will pay the remaining $50.
