Answer:
Cost of equity = 13.6%
Explanation:
<em>We will work out the cost of equity, using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
<em>So we substitute </em>
14.65 = 1.48× (1+r)/(r-0.021)
<em>cross multiplying</em>
(r-0.021)× 14.65 = 1.48 × (1+r)
14.65r - 0.30765
= 1.48 + 1.48r
<em>collecting like terms</em>
14.65r - 1.48r = 1.48 + 0.30765
13.17
r = 1.78765
<em>Divide both sides by 13.17
</em>
r =1.78
/13.17= 0.135
r=0.135× 100= 13.6
Cost of equity = 13.6%
=0.135736522
Answer:
Instructions are below
Explanation:
Giving the following information:
January 520 $ 4,470
February 490 4,260
March 300 2,820
April 500 4,350
May 310 2,960
June 480 4,200
July 320 3,000
August 400 3,600
September 470 4,050
October 350 3,300
November 340 3,160
December 320 3,030
A) To calculate the fixed and variable costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,470 - 2,820) / (520 - 300)
Variable cost per unit= $7.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 4,470 - (7.5*520)
Fixed costs= $570
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,820 - (7.5*300)
Fixed costs= $570
B)
Total cost= 570 + 7.5x
x= hours of mantainance
C) x= 590
Total cost= 570 + 7.5*590
TC= $4,995
D) x= 600
Total cost= 570 + 7.5*600
TC= $5,070
Answer: a. Demographic and Economic .
Explanation:
In Mayor's clinic analysis of the future, it was stated that both the economic and demographic trends looked bleak.
Answer:
C. Businesses create goods for product markets to sell.
Explanation:
Answer:
$1, 263. 75
Explanation:
If annual income is $8,425 and the tax rate is 15%,
Annual Tax would be 15% of $8,425
=15/100 x $ 8425
=0.15 x 8, 425
=$1, 263.75
