Answer:
Cost of common stock is 12.02%
Explanation:
The cost of common stock can be computed from share price formula given below:
share price=do*(1+g)/r-g
do is the dividend just paid which is $1.70
g is the expected dividend growth per year which is 3.10%
r is the cost of common stock which is unknown
share price is $19.65
by changing the subject of the formula:
r=do*(1+g)/share price+g
r=1.70*(1+3.10%)/19.65+3.10%
r=1.7527/19.65+3.10%
r=0.0892+3.10%=12.02%
The company's cost of capital which is also the cost of common stock is 12.02%
Answer:
A) $12,528
Explanation:
We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.
C 2,468
time 6
rate 0.05
PV $12,526.8080
We are asked for the closet option, so we have to chose A) 12,528
Answer:
Warranty of fitness for particular purpose.
Explanation:
Under the principle of implied warranty, products must be fit for the particular use for which they are intended. What does one do with a drink other than drink it ? Therefore, there was no need for Wanda to inform Kelly about the purpose, as Kelly is aware of the purpose for which Wanda wants the product.
Hence, it is seller Kelly's duty to ensure that the goods are suitable for that purpose.In other words, there was an implied warranty that the drink was fit to be consumed.
The demand for air travel between two cities doubles. The elasticity of the supply of air travel between these cities will <span>become more elastic, the longer the time since demand doubled</span>. Elasticity is the responsiveness between supply or demand when nothing changes but the price. In this situation, the demand for air travel between two citifies doubled, so, the traveling is elastic because even though the demand rose, so did the price, but the demand didn't start to drop.
Answer:
Please see attached detailed explanation.
Explanation:
Please find attached detailed preparation of income statement, balance sheet and cash flow statement for the above.
