Answer: 13.88%
Explanation:
The cost of equity can be used along with the variables given to calculate the price of a share using the Gordon Growth model so this can be remodeled to solve for the cost of equity.
Price of stock = (Dividend * (1 + growth rate)) / (cost of equity - growth rate)
35 = (2.96 * (1 + 5%)) / (cost of equity - 5%)
35 = 3.108 / (cost of equity - 5%)
(cost of equity - 5%) * 35 = 3.108
Cost of equity - 5% = 3.108 / 35
Cost of Equity = (3.108 / 35) + 5%
= 13.88%
Answer:
The weighted average unit contribution margin is 7,92
Explanation:
The weighted average unit contribution margin is the sum of the contribution margin of each product multiplied by the quantity sold of that product , then divided by the sum of all the products.
CM average=(CMᵃ * Qᵃ+CMᵇ * Qᵇ)/(Qᵃ+Qᵇ)
CM average=($ 7.25 * 800+$ 9.00 * 500)/(800+500)
CM average=($5800+$4500)/(1300)
CM average=7,92
Answer:
FUTA
Explanation:
FUTA (Federal Unemployment Tax Act) tax is an employer-only tax. Unlike Social Security and Medicare taxes, you do not withhold a portion of FUTA tax from employee wages.
Now that’s what she should do but if she doesn’t what to then oh whale
Answer:
3.33%
Explanation:
<u>Determine the one-year treasury security rate </u>
using this relation below
= ( 1 + 1R3 )^2 / [ ( 1 + E2r1 ) * ( 1 + E3r1 ) ] - 1
= ( 1 + 5.3% )^2 / [ ( 1 + 6.1% ) * ( 1 + 6.5% ) ] - 1
= ( 1 + 0.053 )^2 / [ ( 1 + 0.061 ) * ( 1 + 0.065 ) ] - 1
= 0.0333
= 3.33%