To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data: D1 = $1.45; P0 = $22.50; and gL = 6.50% (constant). Based on the dividend growth approach, what is the cost of common from reinvested earnings?
A. 11.10%
B. 11.68%
C. 12.30%
D. 12.94%
E. 13.59%
Answer: D
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Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for employees to wear that work in hazardous areas?
A. the lithium batteries that are used in each monitor B. the stainless steel, water-resistant cases in which the monitors are contained C. the chest harness used to wear the monitor D. the free training videos that are sent to each new customer E. the insurance for the company's factory
The present value factors found in Table F.1 were calculated by changing the values of ________ and ________
Fill in the blanks with correct word
Under what condition would you NOT accept a project that has a positive net present value?
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Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
A. transit time. B. warehousing. C. packaging. D. containerization. E. lot sizes.