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notsponge [240]
1 year ago
12

ONEOK Inc. has a common stock that just paid a dividend of $3 per share. If the common stock price today is $87 and the growth r

ate of firm is 0.04, find the cost of capital for common stock.
a. 12.46%
b. 7.59%
c. 4.22%
d. 16.95%
e. none of the answers is correct
Business
1 answer:
SashulF [63]1 year ago
8 0

Answer: b. 7.59%

Explanation:

Using the Gordon growth model;

Price of stock = (Current dividend * (1 + growth rate))/(Cost of capital - growth rate)

87 = (3 * 1.04) / (c - 0.04)

87 * (c - 0.04) = 3 * 1.04

c - 0.04 = 3.12/87

c = 0.035862 + 0.04

c = ‭0.075862‬

c = 7.59%

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Answer: A) Give and explain counter-arguments against the arguments for each side.Note: the "counter-arguments" you are asked to give should oppose or answer the arguments on the other side as directly and convincingly as possible. They should not be simply unrelated arguments on the opposite side of the issue.

Explanation: When is talking about security is important to have different views, firstable you need to establish which are going to be your claims, premises or arguments, once you got it is important to search for information which can support your ideas, and once you have found it, counter-arguments are necessary to understand which are your weakest point, you need to know your counter-arguments and how people are likely to attack you, once you know the weak part of your speech you can defend it.

6 0
2 years ago
Sheridan Company has two divisions—Standard and Premium. Each division has hundreds of different types of tennis racquets and te
natita [175]

Answer:

Break-even point in dollars is b) 810,811

Explanation:

Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.

It is calculated with the fixed cost divided to the porcentage of contribution margin.

step 1: % of contribution margin

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Step 2: Break-even point

FC/%CMg

$300,000/0.37=$810,811

3 0
2 years ago
Joel borrows his brother's boat for the month of June, as he has done for the past few years. In the past, Joel has fixed anythi
baherus [9]

Answer:

The correct answer is the option D: Yes, if the old steering wheel would have damaged the boat.

Explanation:

To begin with, in the case presented Joel's brother seems to be quite pleasent with the fact that Joel is repairing the boat once year so that means that he does not need to take the boat in for regular maintenance so therefore that he saves money due to the work done by Joel. That is the reason why if the steering wheel would have damaged the boat if it was not replaced then the cost that Joel's brother would have paid in order to repair all the damaged done by the wheel would have been much greater than just the cost of the steering wheel itself. Moreover, it is quite understood that they both had a tacit agreement that has been there for many years so therefore that Joel's brother must pay him otherwise, plus if the new wheel improves the value of the boat as well.

7 0
2 years ago
Consider the following​ situation, which involves two options. Determine which option is less expensive. Are there unstated fact
Sunny_sXe [5.5K]

Answer:

It will be better to keep the old car.\left[\begin{array}{cccc}$&$New&$Old&$Differential\\$purchase&-14000&&14000\\$Gasoline spending&-4292&-9479&-5187\\$repairs&&-7500&-7500\\$insurance&-4000&-2000&2000\\$Result&-22292&-18979&3313\\\end{array}\right]

Explanation:

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new:

250 / 53 =  4,716981

then this x 52 weeks x 3.5 per gallon x 5 years=

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insurance:

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Which of the following is an example of qualitative data?
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B

jwxjedexececrctcrctctctctvtvtvt

4 0
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