Answer:
6.81%
Explanation:
KellyAnne public relation just paid an annual dividend of $1.27 on common stock and it increase by 3.4 percent annually
The first step is to calculate next year dividend
= 1.27 + 1.27 × 3.4/100
= 1.27 + 1.27 × 0.034
= 1.27 + 0.04318
= 1.3132
Therefore the required rate on the stock can be calculated as follows
Required rate of return - 3.4%= 1.3132/38.56
= Required rate of return -3.4%= 3.41%
Required rate of return= 3.41% + 3.4%
= 6.81%
Hence the required rate of return on the stock is 6.81%
Answer:
The state of the economy.
Explanation:
An investment can be regarded as an asset/item which is acquired so that income can be generated i.e the Asset can appreciate, by saying appreciate we mean the increase in value with time. The goal of investment when purchased is to create a future wealth.
It should be noted that The level of investment in markets often indicates
The state of the economy.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The correct definition for free cash flows to the firm is <u>D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure</u>.
<h3>What is free cash flow?</h3>
Free cash flow (FCF) is the cash a company has after all the cash outflows for its operations and capital assets maintenance.
This implies that free cash flow is the available cash that a company has after making payments for its operating expenses and capital expenditures (Capital Expenditure).
A. EBITDAX (1-Tax) + Depreciation - Changes in working capital + Capital Expenditure
B. EBITDAX (1-Tax) - Depreciation - Changes in working capital - Capital Expenditure
C. EBITX (1-Tax) - Depreciation - Changes in working capital + Capital Expenditure
D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure
Thus, the correct definition for free cash flows to the firm is <u>Option D</u>.
Learn more about free cash flows at brainly.com/question/15848997
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