The equity cost of capital for the Jumbuck Exploration is 22%
Explanation:
Equity cost refers to the return offered to the customers in place of their investment in the organisation stocks. It is calculated by the formula
Rₐ = (D₁/P₀)+g
Where Rₐ= cost of equity
D₁= dividends announced
P₀=share price (current)
g= growth rate
Now given details-
Dividend announced (D₁)- $ 0.26
Current market price (P₀) - $ 2.00
Expected price= $ 2.10
growth rate= expected price- current price
growth rate (g) =$ 0.10
Putting the values to find Rₐ
Rₐ=(0.26/2.00)+0.10
Rₐ=0.23 or 23%
Nearest answer is 22%
Hence the equity cost of the capital is 22%
Answer: Focused cost leadership
Explanation:
Focused cost leadership could be described as targeting your market to a category of people only and not necessarily everyone. Some businesses do have a target market in mind when carrying out their production or sales. Their product isn't for everyone but this particular persons. They could design it from a normal general product but they will make it look perculiar and specific for this targeted market.
Answer: Your Advisor
Explanation:
MyUC / UC One is a portal for UC students.
Answer:
Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million
Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock
If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.
If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.
The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.
Answer:
The total amount you pay in social insurance taxes on your second job is 2,914.65 couches
Explanation:
The computation of the total amount paid is shown below:
= (Total income - paid amount) × Social insurance tax rate
= ($110,100 - $72,000) × 7.65%
= 2,914.65 couches
We simply have taken the difference between the total amount and the paid amount and then multiply it with the social insurance tax rate
All other information is not relevant. Hence, ignored it
