Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
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The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
Answer: A. True
Explanation: The Statute of Frauds denies enforceability to certain contracts that do not comply with written requirements. Therefore, a party's oral agreement to pay another's debt is never enforceable as such agreements and contracts must be in writing in order to become enforceable. Any oral modification is likely not enforceable if it falls under Statute of Frauds which renders any contract that is not in writing as void.
Answer: fixed dividend yield
Explanation:
Common shareholders are typically granted six rights which are right to transfer ownership, right for inspection of corporate documents, ownership, voting power, right to transfer dividends, and also right to sue for any wrongful acts.
The common stockholders are only entitled for dividends after the payment of debts and preference shareholders have been sorted. Therefore, their dividends is not fixed.
The Americans gained an advantage.
Answer: DEFENDER
Explanation: An adaptive strategy is a strategy put in place by business organisations in order to survive or remain profitable or in business during hard and unpredictable economic conditions. It helps the business to think beyond the usual to make certain strategic changes and decisions.
According to Adaptive strategy Hohner will most likely be described as A DEFENDER as it product has a steady demand rate with a very high market share.