In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will:_____.a. go up.b. go down.
c. stay the same.
d. slowly increase.

Answers

Answer 1

Answer:

Answer:

b. go down.

Explanation:

The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will Go down

Related Questions

Last year, Dora, Inc. produced 70,000 widgets and incurred $210,000 of variable costs and $196,000 of fixed costs. Dora has received a special order from a foreign customer for 3,000 widgets. Dora has sufficient capacity to fill the order without jeopardizing regular sales. Dora would incur $3,150 in additional shipping charges to fulfill this special order. If Dora wants to break even on this order, what should the unit selling price be:A : $4.05B : $6.85C : $5.80D : $3.00
True or false. The primary functions of price in a free market are to inform, direct, and motivate consumers and firms.
A rumor of "right sizing" at Ojai's engineering firm has him and his wife, Kaya, concerned about their preparation for meeting financial emergencies. Help them calculate their net worth or complete Worksheet 4, and calculate and interpret the current ratio, given the following assets and liabilities:Checking account ………………… $2,000Savings account ………………….. $4,000Stocks ……………………………. $8,000Utility bills ………………………. $500Credit card bills …………………. $1,000Auto loan ……………………….. $2,600
An inferior good is Multiple Choice A. one whose demand curve will shift rightward as incomes rise. B. not accurately defined by any of these statements. C. one that has not been approved by the Federal Food and Drug Administration. D. one whose price and quantity demanded vary directly.
What are the key differences between using a deerskin as money and using a dollar bill as money?a. Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.b. Using a deerskin as money may not be as widely accepted as using paper money.c. Using a deerskin as money cannot fulfill the key functions of money: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.d. A and b only.e. All of the above?

Highlight the possible risks and problems that should be address during the implementation process?

Answers

Answer:

In simple words, implementation process refers to the stage under which the strategies and plans are converted into actions. This is one of the main stages as the overall result depends highly on this stage.

In this stage, the supervisor should make sure that the workers are giving their fullest for the job, are the resources needed to perform the job available in adequate quantity.

The best way to implement any strategy is to make short goals with short time periods and evaluate each phase if he team is performing up to the mark.

Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

Answers

Answer: $220 of revenue, $440 of deferred revenue

Explanation:

Based on the information in the question, revenue will be recognised for the months of June and july which will be:

= 2/6 × $660

= $220

Deferred revenue will be:

= $660 - $220

= $440

Therefore, As of August 1st, Choplet’s accounting records would indicate $220 of revenue, $440 of deferred revenue.

Identity which of the following are project resources that can be managed: (choose all that apply)buildings the company owns
cash from the company
team member skills
problems the team encounters
the finished product

Answers

According to the project resources that can be managed are buildings the company owns, cash from the company, and team member skills.

Project resources are components required for the proper completion of a project.

They include people, equipment, money, time, and knowledge - in short, whatever you would need from project planning through project delivery.

These are divided into three categories: work, materials, and expenses.

The project manager defines resource needs to determine the resources required to complete the project's task.

Therefore, the correct option is as follows:

Buildings the company owns
Cash from the company
Team member skills

To know more about the project resources, visit:

brainly.com/question/13783563

#SPJ2

Answer: 1,2,3

Explanation:

Beth owns a corporate office park in Ohio. Her ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if she chooses. Beth's ownership interest is:

Answers

Answer:

Fee Simple Absolute

Explanation:

The 6 types of modern freehold estates, distinguished by duration includes;

1. Fee simple absolute

2. Life estate

3. Fee tail

4. Fee simple determinable

5. Fee simple subject to a condition subsequent

6. Fee simple subject to an executory limitation

And also

The types of Fee Simple includes

A) Fee Simple Absolute

B) Defeasible Fees

Fee Simple Absolute

This is regarded as an absolute ownership. It is a never ending period of time with no hindrance or limitations on its inheritability. it also cannot be ended or shuffled on the happening of any event. It is also regarded as the right to possess now, even until the end of time.

Its characteristics includes:

1. The holder has all the rights or entitlement.

2. The duration is never ending that is, the interest is absolute because the interest will not end on the occurrence of an event or condition

3. There is no future interest that follows it

3. The owner has the right of possession, alienation, and exclusion

And others.

Unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742

An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

Answers

Answer:

Ending inventory= $1706

Explanation:

Giving the following information:

Units Per unit price Total

1/1/2017: 290 *$5.00= $1450

1/15/2017: Purchase, 140*$5.10= $714

1/28/2017: Purchase, 140*$5.30= $742

At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)

Ending inventory= 140*5.30+140*5.10+50*5= $1706

William owns 1 share of Park stock. He purchased the stock three years ago for $17.50. The stock is currently trading for $40 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.00. o Year 2: $2.00. o Year 3: $3.00. What is the compounded rate of return (IRR) that William has earned on this investment