Answer:
14.06%
Explanation:
The computation of the cost of common equity using the DCF method is shown below:
Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate
= [$2.31 ÷ $25.50] + 0.05
= 14.06%
We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come
Answer:
60%
Explanation:
To calculate the percentage assigned to cost of goods sold
, we should use the formula:
= 60%
Therefore, the percentage assigned to Cost of goods sold is 60%
Answer: Decrease, decrease
Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.
The answer is D.} the inflation rate was 12 percent.
