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Nat2105 [25]
3 years ago
10

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 =

$42.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?
Business
1 answer:
Fynjy0 [20]3 years ago
8 0

The cost of equity raised by selling new common stock is 11.33%.

Using this formula

re = D1/(P0 × (1 - F)) + g

Where:

re=Cost of equity=?

Dividend(D1)=$1.75

Stock price(P0)=$42.50

Growth rate(g)=7.00%

Floatation cost (F)=5.00%

Let plug in the formula

re =1.75/(42.50 × (1 - 0.05)) + 0.07

re=1.75/(42.50×0.95)+0.07

re=(1.75/40.375)+0.07

re=0.04334365+0.07

re=0.1133×100

re=11.33%

Inconclusion the cost of equity raised by selling new common stock is 11.33%.

Learn more about cost of equity here:brainly.com/question/25651592

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An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is
drek231 [11]

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

4 0
3 years ago
A broker-dealer is physically located and registered in State A. The broker-dealer has an existing client in State A who is a st
mars1129 [50]

Answer:

D) The broker-dealer must be registered in State B in order to contact the client while she is in medical school in State B

Explanation:

Since the client will live in state B for an extended period of time, at least 4 years if she completes medical school, the broker-dealer must be registered in state B if he wishes to continue doing business with her.

If the client would have only gone to state B for a few months, then the broker could have still worked with her without registering in state B since the client could be considered on a vacation trip.

7 0
4 years ago
A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same custo
Ray Of Light [21]

A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

<h3>What is a group of products that are closely related?</h3>
  • A collection of related products is referred to as a product line.

<h3>What is a group of products called?</h3>
  • A group of related products made by the same company and sold under the same brand is referred to as a product family.
  • A business may develop a product family to capitalize on the devoted following of its original brand.

<h3>What is product group?</h3>
  • A set of departments, classes, subclasses, or things that are gathered together for a specific objective is known as a product group.
  • SIM employs product groups for the following purposes to plan and carry out various stock count procedures (Problem Line, Unit, and Unit and Amount product groups).

<h3>What is product and types of product?</h3>
  • Consumer products and industrial products are the two primary categories into which items are divided.
  • Consumer goods are those that the final consumer buys for personal use.
  • The customer buys these consumer goods to fulfill his own wants and requirements.

Learn more about product line here:

brainly.com/question/14308690

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6 0
2 years ago
Coffee Klatch is a chain of small coffee shops that are located in college towns and mostly employ students. The company offers
NNADVOKAT [17]

Answer:

High Morale.

Explanation:

Morale is internal feeling and it is inspired by the environment. It depends upon the relations between expectations and reality.

A motivated person tends to experience high morale A person in High morale group need not be Motivated.

Make sure that employees are interested in and appreciated for their work. High morale yields higher productivity in an organization Employees’ spirits can easily fall if their day-to-day responsibilities are monotonous or if they don’t feel valued by their supervisors. Over time, this can translate into an unmotivated and unproductive staff.

Employees evaluate their treatment relative to the treatment of others, they need to fell contributions to their jobs. What employees receive in return is the perceived ratio of contribution to return determines, and equity.

How to Boost Morale?

-Motivate employee with your examples

-Establish clear and good communication with employees

-Enrich employees’ jobs

-Challenge employees to perform better Involve employees as equal members of your team

-Consult your employees

-Empower your employees

-Acknowledge and appreciate employees

-Show care to your employees

-Create healthy work environment

-Do some personal things

5 0
4 years ago
Joey, the manager of Tarts Inc., has always been supportive toward the employees and used to understand their feelings. In most
ch4aika [34]

Joey would score high on Consideration

Explanation:

Consideration is the advantage that the contract gives you. Everyone in a contract must therefore something promise to do. Furthermore, consideration gives each party a benefit. If the agreement fails to take into account, the agreement may become ineffective.

The trade of value by each party is considered in a contract. Services or products, although consideration can be whatever the parties accept, are most often exchanged or promised in a contract.

For example: Cash.

5 0
4 years ago
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