Answer:
-2.23%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
In first case,
The current dividend would be
= $0.85 + $0.85 × 5%
= $0.85 + $0.0425
= $0.8925
The other things would remain the same
So, the cost of common equity would be
= $0.8925 ÷ $20 + 5%
= 0.044625 + 0.05
= 9.46%
In second case,
The price would be $40
The other things would remain the same
So, the cost of common equity would be
= $0.8925 ÷ $40 + 5%
= 0.0223125 + 0.05
= 7.23%
The difference would be
= 7.23% - 9.46%
= -2.23%
Answer:
44%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
Internal rate of return can be determined using a financial calculator
Cash flow in year 0 = $-30 million
Cash flow in year 1 = $13 million
Cash flow in year 2 = $23 million
Cash flow in year 3 = $29 million
IRR = 44%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
D) participative
Explanation:
A participative leader is someone who is really involved in the company's activities and will be willing to receive input or advice from different employees and staff members. The leader will be open to consider the opinions of different staff members during decision making processes.
The leader as well as his/her staff members will be able to access all the relevant information and discuss possible options. Some participative leaders will also be willing to decide important issues through majority votes that include the leader and important staff members.
The countries that have a mixed economic systems are: <span>Iceland, Sweden, France, the United Kingdom, the United States, Russia and <span>China! ;) Hope I helped :)</span></span>