The CEO of Harding Media Inc. as asked you to help estimate its cost of common equity. You have obtained the following data: D 0 = $0.85; P0 = $22.00; and dividend growth rate = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. Based on the dividend growth model, by how much would the cost of common from reinvested earnings change if the stock price changes as the CEO expects? a. −1.49% b. −2.03% c. −1.84% d. −2.23% e. −1.66%

Answer:

c. −1.84%

Explanation:

the dividend growth model:

P₀ = Div₁ / (Re - g)

currently

22 = 0.901 / (Re - 0.06)

Re - 0.06 = 0.901 / 22 = 0.041

Re = 0.041 + 0.06 = 0.1009 = 10.09%

if stock price increases to $40, then

40 = 0.901 / (Re - 0.06)

Re - 0.06 = 0.901 / 40 = 0.0225

Re = 0.0225 + 0.06 = 0.0825 = 8.25%

decrease in Re = 8.25% - 10.09% = -1.84%

Which financial tool is most important when planning for your future financial goals?
A.Enrolling in a checking account
B.Creating a budget
C.Mortgaging a house
D.Taking on extra debt

a unique individual who has the courage to under take the risk associated with creating, organizing and owning business

Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.

5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?

5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?

as of December 31, 2020, was as follows: Common stock, par value $2; authorized 20,000 shares; issued and outstanding 10,000 shares $ 20,000 Paid-in capital in excess of par 30,000 Retained earnings 85,000 Total Stockholders' Equity $135,000 On March 1, 2021, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2021, the fair value of the stock was $6 per share. For the two months ended February 28, 2021, Firm ABC sustained a net loss of $15,000. What amount should Firm ABC report as retained earnings as of March 1, 2021

"You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $516,000 today, plus $516,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.)"

Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value. On that date, Reagan's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000. Ford had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000. Reagan used the equity method to record its investment in Ford. On December 31, 2018, Reagan had equipment with a book value of $250,000 and a fair value of $400,000. Ford had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2018? A. $387,000. B. $497,000. C. $508.000. D. $537,000.

The price elasticity of demand for gizmos is known to be ​(disregarding the negative ​sign). If sellers of gizmos increase their​ prices, total revenue from gizmo sales will

In the fictional country of Dirian the economics statistics department has been busy calculating the price index for a basket of goods from 2013 to 2017. January 2013 is the standardized price index, at 100, for a basket of consumer goods in the country. The price index increased in 2014 to 104.7, in 2015 to 109.3, in 2016 to 113.1, and in 2017 it increased to 119.2. You have been called to the country to help establish the rate of inflation for those years. What are the inflation rates in Dirian for 2014, 2015, 2016, and 2017

tina is the sole owner of tina's lawn mowing, incorporated (TLM). In one year TLM collects $1,000,000 from customers to mow their lawns. TLM equipment depreciates in value by $125,000. TLM pays $600,000 to its workers who pay $140,000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following

On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2022. The 6% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the March 31, 2022 collection. (Do not round intermediate calculations.) 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2021 and 2022

Stellar, Inc. had net sales in 2020 of $1,508,000. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $393,100 debit, and Allowance for Doubtful Accounts $3,490 credit. If Stellar estimates that 8% of its receivables will prove to be uncollectible.

Required:
Prepare the December 31, 2020, journal entry to record bad debt expense.

A worker age 40 wishes to accumulate a fund for retirement by making deposits of $1000 at the beginning of each year for 25 years. Starting at age 65 the worker retires, and plans to make annual withdrawals of $x at the beginning of each year, for 10 years, at which point the fund will be depleted. Assuming that all payments are certain to be made, find the amount of each withdrawal starting at age 65 to the nearest dollar, if the effective rate of interest is 8% for the first 25 years and 7% thereafter.

Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580. VP does not sell the installation service separately. VP is aware that other similar vendors charge $320 for the installation service. VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.

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Consider a budget line drawn with avocados on the vertical axis and tangerines on the horizontal axis. The consumer's income is $100, the price of avocados is $5, and the price of tangerines is $10. Suppose the consumer's income falls to $75.00, but the prices stay the same. The change in income produces a: Group of answer choices parallel shift inward of the indifference curves. new budget line which is steeper than the original one. parallel shift inward of the budget line. new budget line which is flatter than the original one.

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Match the strategies to ensure effective service through intermediaries to the scenarios.

OPTIONS
control strategy
empowerment strategy
partnering strategy

------------------------------
Jason has just launched a company. He has supplied
the intermediaries with research regarding his
company’s services.
arrowRight
Olivia is managing a company where the services have
to be sold by working together with the intermediaries.
arrowRight
Peter’s company has set many service standards for the
intermediaries. His company constantly measures these
standards and makes sure they are followed.
arrowRight

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Beliefs that are handed down from one generation to another and that influence decision making are _____.

genetic
diversity issues
universal values
cultural preferences

Gael Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. Under Plan II, there would be 135,000 shares of stock outstanding and $2.29 million in debt outstanding. The interest rate on the debt is 5 percent and there are no taxes. Use M&M Proposition I to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the value of the firm under each of the two proposed plans? (Do not round intermediate calculations and round your answers to the nearest whole dollar amount, e.g., 32.)

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explain partner by estoppel ...and please follow me ​???

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How are consumer demand and business-to-business demand of goods and services related?

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Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows. Per Unit Data Selling Price $150 Direct Materials 20 Direct Labor 15 Variable Manufacturing Overhead 12 Fixed Manufacturing Overhead 30 Variable Selling 3 Fixed Selling and Administrative 10 Total Costs 90 Operating Margin $60 During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be: Group of answer choices $882,000. $980,000. $972,000. $1,080,000.