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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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cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations
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Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

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Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\

With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

2m as an area and the height is "x"

x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\

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2 years ago
Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgete
valentina_108 [34]

Answer:

As per Sales Budget the budgeted sales for the quarter four are $240,000. Below is the Sales budget.

Explanation:

Scora, Inc.    

Sales Budget    

Month Budgeted Unit Sales Budegted Unit Price Budgeted Total Sales

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January                          1200                   $50            $60,000

February                         2000                   $50            $100,000

March                         1600                   $50            $80,000

Total for the quarter 4800                   $50            $240,000

Hence, it is concluded that the budgeted sales for the January, February, March are $240,000.

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Romashka-Z-Leto [24]

Answer:

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Explanation:

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Answer:

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