Countess Corp. is expected to pay an annual dividend of $4.45 on its common stock in one year. The current stock price is $72.55 per share. The company announced that it will increase its dividend by 3.60 percent annually. What is the company's cost of equity
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Ответ:
9.73%
Explanation:
The cost of equity formula is stated thus:
cost of equity=D1/P0+g
D1=future expected dividend payment=$4.45
P0=current stock price=$72.55
g=dividend constant growth rate=3.60%
cost of equity=($4.45/$72.55)+3.60%
cost of equity=6.13% +3.60%
cost of equity=9.73%
Ответ:
$978,306
Explanation:
The computation of the unremembered liability coupons is shown below:
= (Number of coupons issued × redeemed coupon percentage) - (processed coupons) × worth of coupon
= (841,000 coupons × 73%) - (381,000 coupons) × $4.20
= (613,930 coupons - 381,000 coupons) × $4.20
= 232,930 coupons × $4.20
= $978,306
We simply deduct the processed coupons from the redeemed coupons and then multiply it by the coupon worth