Answer:
Option (D) is correct.
Explanation:
Given that,
Dividend, D0 = $0.90
Price, P0 = $27.50
Growth rate, g = 7.00% (constant)
D1 = D0 (1 + g)
= $0.90 × (1 + 0.07)
= $0.90 × 1.07
= $0.963
Cost of equity, Ke = [ D1 ÷ P0 ] + g
= [$0.963 ÷ $27.50 ] + 0.07
= 0.0350 + 0.07
= 0.1050 i.e 10.50 %
1. Critical Thinking
2. Project Management
3. Analytical Skills
4. Holistic Approach
5. Technical Skills
Answer:
$37.92 is the answer
Explanation:
Stock price, P0 = D1÷(r+g)
D1 is next expected dividend
r is required return
g is growth rate
= $10×(1-9%)÷(15%+9%)
= $37.92
Answer:
The correct option is C
Explanation:
Income statement is the one which states the core financial statements of the company which shows the profit and loss. And the profit and loss statement states the ability of the company for generating sales, create profits and manage expense.
It is that statement which to be prepared first, as in prepared before the retained earnings statement and the balance sheet statement.
Answer:
73 bottles
Explanation:
Let x = total number of orders
C(x) indicates number of orders and the cost of storage
Thus,
6$ dollar to place a reorder
So,
C(x)= 1(882/x)+6x = 882/x+6x
C'(x)=-882/x^2+6=0
6=882/x^2.
Thus,
x^2=882/6
Which indicates 882/12=73 bottles of wine per order
Thus C (12)=1*73+6*12=$145 per year
The best possible number of bottles per order = 73 bottles
