Answer:
The Current dividend per share (D0) $ 2.37
Explanation:
Current dividend (D0) P0×(r-g)÷(1+g)
Here,
Stock price (P0) $ 43.20
Required return ( r) 11.60%
Growth rate (g) 5.80%
$43.20*(11.60%-5.80%)/(1+5.80%)
Current dividend (D0) $ 2.37
The correct answer is hygiene factors. Hygiene factors is
being describe as the job dissatisfaction that an individual feels for the job
that he or she is in. The individuals are adequately addressed by this, they
are likely not to be dissatisfied or will be satisfied.
Answer:
Direct material purchase budget = 546,000 pounds
Explanation:
<em>Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.
</em>
Purchase budget = usage budgeted + closing inventory - opening inventory
Usage budget = Production budget × standard materials per unit
= 172,000 × 3 pounds= 516,000
Purchase budget =516,000 + 380,000 - 350,000=546,000
Direct material purchase budget = 546,000 pounds
Higher than 4.0 if it's weighted
Answer:
Cost of equity = 14.74%
Explanation:
The capital asset pricing model is a risk-based model for estimating the return on a stock..
Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.
Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM,
E(r)= Rf + β(Rm-Rf)
E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.
Using this model, we can work out the value of beta as follows:
β-1.2 Rf- 4.3%, Rm = 13%
E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74
%
Expected return = 14.74
%
Cost of equity = 14.74%
