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zmey [24]
3 years ago
11

The current price of xyz stock is $50.00. dividends are expected to grow at 7% indefinitely and the most recent dividend was $1.

what is the required rate of return on xyz stock? 9.3% 10.6% 9.0% 11.2% 9.1%
Business
1 answer:
muminat3 years ago
5 0
1/50+7 = 9.0 so the answer is 9.0
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Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows
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Answer:

$41,000.

Explanation:

The computation of the amount of direct materials cost charged to completed jobs is shown below:

= Direct Material cost - charging cost in direct material cost

= $57,000 - $16,000

= $41,000

By subtracting the charging cost that added in the direct material cost from the direct material cost we can find out the direct material cost charged that is computed above.

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Indicate whether a change in the value of each of the following determinants of demand leads to a movement along the demand curv
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Answer:

movement along the demand curve: i

shift in the demand curve: ii, iii, iv, vi

no effect: v

Explanation:

A change in the price of the product causes quantity demanded to change. It will be indicated by a movement on the same demand curve.  

A change in other factors will cause the demand for the product to change. It is indicated by a shift in the demand curve.  

i. Change in the market price: movement along the demand curve

ii. Change in income: shift in the demand curve

iii. Change in consumer expectations: shift in the demand curve

iv. Change in the price of a related good: shift in the demand curve

v. Change in the price of an unrelated good: no effect

vi. Change in preferences for this good: a shift in the demand curve

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3 years ago
A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the cri
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Answer:

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2 years ago
g Estimate the cost of common equity for a firm, given the following information. For the next year, the firm plans to pay a div
wel

Answer:

The cost of equity is 12.49 percent

Explanation:

The price per share of a company whose dividends are expected to grow at a constant rate can be calculated using the constant growth model of the DMM. The DDM bases the price of a stock on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / r - g

Where,

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As we already know the P0 which is price today, the D1 and the growth rate in dividends (g), we can plug in the values of these variables in the formula to calculate the cost of equity (r)

100.81 = 8.76 / (r - 0.038)

100.81 * (r - 0.038) = 8.76

100.81r  -  3.83078 = 8.76

100.81r  =  8.76 + 3.83078

r = 12.59078 / 100.81

r = 0.12489 or 12.489% rounded off to 12.49%

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3 years ago
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