Adamson will pay a dividend of $2.5 per share at the end of this year; the dividend will grow at a constant rate of 4.5%. Its common stock now sells for $30 per share. New stocks are expected to be sold to net $27.50 per share. Estimate Adamson's cost of retained earnings and its cost of new common stock.

Answers

Answer 1

The Adamson's cost of new common stock is approximately 91.67%.To estimate Adamson's cost of retained earnings, we can use the Gordon Growth Model.

The formula for the cost of retained earnings (k) is: k = Dividend / Stock Price + Dividend Growth Rate

In this case, the dividend is expected to be $2.5 per share, and the dividend growth rate is 4.5%. The current stock price is $30 per share. Plugging in the values:

k = $2.5 / $30 + 0.045

k ≈ 0.0833 + 0.045

k ≈ 0.1283 or 12.83%

Therefore, Adamson's cost of retained earnings is approximately 12.83%.

To estimate the cost of new common stock, we can use the formula:

Cost of New Common Stock = Net Proceeds per Share / Stock Price

In this case, the net proceeds per share from the new stock issuance are $27.50, and the current stock price is $30. Plugging in the values:

Cost of New Common Stock = $27.50 / $30

Cost of New Common Stock ≈ 0.9167 or 91.67%

Therefore, Adamson's cost of new common stock is approximately 91.67%.

These estimations provide insights into the cost of financing through retained earnings and issuing new common stock for Adamson's future investments and financial decisions.

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Related Questions

Select the correct answer.
Which of these is an informal group?

A. command group
B. self-managed work group
C. task group
D. virtual group
E. interest group

Answers

Answer:

B

Explanation:

hope this helps

Which is a good rule to follow when sending business emails? (1 point)

Answers

Answer:

Avoid forwarding spam and unnecessary messages such as chain letters.

Explanation: did the test

The good rule that must follow at the time of sending business emails is to avoid forwarding spam and unwanted texts like chain letters.

What is email?

An email, is also called as the electronic mail. It is one of the most extensively employed features of the Internet, that is mostly used in the formal business organizations.

It allows a person to transport and acquire messages from nay person in the globe that has an email account. Within the TCP/IP suite, email uses a variety of protocols.

When sending business emails, a good tip to follow is to avoid forwarding spam and undesirable texts like chain letters.

Therefore, the use of formal languages and proper formats made the emails more accurate.

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What nose ring? Should I use

What nose ring? Should I use

Answers

a studddddd cause they look the best.

You have a credit card account with a previous balance of $635. You added two additional purchases for $75 and $50 during this billing period. You made a payment of $150. Your APR is 16.5%. Using the previous balance method, what is your new balance?

Answers

By using the adjusted balance method, your new credit card balance will be $618.39.

What is the Adjusted Balance Method?

The adjusted balance method calculates your finance charge by subtracting any payments and credits made during the current billing cycle from the previous balance at the end of the previous billing cycle.

Calculations:

Previous balance = $635

Additional purchases = $125 ($75 + $50)

Payment = $150

APR = 16.5%

Computation of Finance charge:

= ($635 - $150 - $125) x 16.5%/12

= $8.39

Computation of Adjusted balance:

= ($635 - $150 + $125 + $8.39

= $618.39

Therefore, by using the adjusted balance method, the new balance on the credit card is $618.39.

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hurry!!
Emergency management plans exist to address what three things?
starvation

response

dehydration

recovery

pet safety

preparedness​

Answers

Emergency management plans exist to address the three things are preparedness​, recovery and response. The correct option is (B, D & F).

What do you mean by the Emergency plans?

The word describes the actions you take to ensure your safety before, during, and after a crisis or incident. Your safety in both natural and man-made calamities depends on these plans.

The current paradigm categorises disaster management into four phases: mitigation, readiness, response, and recovery. Each of these phases is the subject of entire courses.

Conducting a risk assessment to identify potential emergency scenarios is the first stage in creating an emergency response plan.

Therefore, Emergency management plans exist to address the three things are preparedness​, recovery and response.

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why do airline suppliers, such as boeing and airbus, have so much power?

Answers

There  are only two main suppliers present in an airline industry, Airbus and Boeing that has the power to control the fuel prices.

What is  a price?

In business and economics, price refers to the amount of money that a buyer pays to acquire a good or service. It is the exchange value of a product, and it represents the value that the buyer and seller place on the item being sold.

Price is determined by various factors, such as supply and demand, production costs, competition, and market trends. A high demand for a product, for example, can drive up its price, while increased competition can lead to lower prices.

Because the Airbus and Boeing are the two significant supplier in an airline industry and that gives them the power to control the fuel prices.

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What certificate will we get if we become a teacher?​

Answers

Answer:

You can get a teaching certificate or an alternative certification, but go for the nationally-recognized board certification when you're eligible. Use the best job sites. The best job sites, for teaching jobs, are the websites of the school and school district themselves.

Here are the expected returns on two stocks: Returns Probability X Y 0.1 -20% 10% 0.8 20 15 0.1 40 20 If you form a 50-50 portfolio of the two stocks, what is the portfolio's standard deviation? a. 8.1% b. 10.5% c. 13.4% d. 16.5% e. 20.0%

Answers

Option e is correct.

To find the standard deviation of the portfolio, we need to calculate the variance of the portfolio's returns. The variance of a portfolio is equal to the sum of the variances of the individual stocks plus the covariance between the stocks.

The variance of X is 0.1^2 * 0.1 + 0.8^2 * 0.8 = 0.008 + 0.64 = 0.64.

The variance of Y is 10%^2 * 0.1 + 20%^2 * 0.8 = 0.01 * 0.1 + 0.4 * 0.8 = 0.01 + 0.32 = 0.33.

The covariance between X and Y is 0.1 * 10% + 0.8 * 20% = 0.8.

Therefore, the variance of the portfolio is 0.64 + 0.33 + 0.8 = 1.37.

The standard deviation of the portfolio is the square root of the variance, which is approximately 19.1

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Zainab is researching whether a Poisson process would be a suitable model for vehicle breakdowns on a busy motorway. For weekdays across one month, she collects data on the number of breakdowns each hour on the motorway, over a specific time period, between 10.00a.m. and 2.00 p.m. (a) With reference to one of the assumptions underlying a Poisson process, give a possible reason for why Zainab has restricted her study to vehicle breakdowns at a particular time of day. (b) Zainab enters her data into Minitab and calculates the following summary statistics for the number of breakdowns occurring each hour. Do the summary statistics support the Poisson process as a model for the data? Justify your answer. Statictirc (c) Based on the data collected, Zainab assumes that on average, two breakdowns occur per hour on the motorway. (i) Calculate the probability that there will be fewer than three breakdowns between 10.30 a.m. and 12.30 p.m. (ii) Calculate the probability that the interval between two successive breakdowns is less than 30 minutes.

Answers

(a) The reason why Zainab has restricted her study to vehicle breakdowns at a particular time of day is that a Poisson process assumes that the rate at which events occur should be constant over time. Therefore, Zainab has restricted her study to vehicle breakdowns between 10:00 a.m. and 2:00 p.m. to make sure the rate of breakdowns is relatively constant.

(b) The summary statistics do support the Poisson process as a model for the data. In a Poisson distribution, the variance should be equal to the mean. In the data provided, the mean is 2.08 and the variance is 2.11, which are very close. The histogram of the data also appears to be Poisson-like. Therefore, we can conclude that the data follows the Poisson distribution.

(c) (i) we need to use the Poisson distribution. The average rate of breakdowns per hour is 2. Therefore, the average rate is 4. The probability of having zero or one breakdown calculated as follows :P(X ≤ 2) = P(X = 0) + P(X = 1) + P(X = 2) where X ~ Poisson (4). Using a Poisson distribution table, we get;(X ≤ 2) = P(X = 0) + P(X = 1) + P(X = 2) = 0.018 + 0.073 + 0.147 = 0.238.(ii) we need to use the exponential distribution. Average time between two successive breakdowns = 60 minutes/2 breakdowns = 30 minutes Therefore, the rate parameter, λ = 1/30.  This can be calculated as:P(X < 30) = 1 - e^(-λx) = 1 - e^(-1) = 0.6321 Therefore, the probability that the interval between two successive breakdowns is less than 30 minutes is 0.6321.

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Zainab has restricted her study to a particular time of day to assume that the rate of vehicle breakdowns remains constant during that time period, which is an underlying assumption of a Poisson process.

The probability of having fewer than three breakdowns between 10.30 a.m. and 12.30 p.m. is approximately 0.406 or 40.6%.

The probability that the interval between two successive breakdowns is less than 30 minutes is approximately 0.632 or 63.2%.

How to Solve the Problem?

(a) One of the acceptances underlying a Poisson process is that the rate of occurrences occurring inside a given time pause is constant. By confining her study to a particular opportunity of day, between 10.00 a.m. and 2.00 p.m., Zainab is provided that the traffic conditions, driver performances, and other determinants that contribute to boat breakdowns remain almost constant all the while this time period. This presumption allows her to treat the dossier as a Poisson process.

(b) To determine if the summary enumerations support the Poisson process as a model for the data, we need to analyze if certain environments are met. The key conditions for a Poisson process are:

The occurrences occur alone.The average rate of events is perpetual over time.The expectation of more than individual event occurring in an infinitesimally insignificant interval is insignificant.

If Zainab's data answer these conditions, it would support the Poisson process model.

(c) (i) To reckon the probability of less than three breakdowns between 10.30 a.m. and 12.30 period after 12 noon and before sunset, we can use the Poisson distribution. The average rate of breakdowns is given as two per time.

Let's denote the haphazard variable X as the number of breakdowns all the while this time ending. The parameter λ (lambda) shows the average rate of breakdowns, which is 2.

Using the Poisson distribution recipe, the probability maybe calculated in this manner:

P(X < 3) = P(X = 0) + P(X = 1) + P(X = 2)

P(X = k) = (e^(-λ) * λ^k) / k!

P(X < 3) = (e^(-2) * 2^0) / 0! + (e^(-2) * 2^1) / 1! + (e^(-2) * 2^2) / 2!

Calculating this expression, we find:

P(X < 3) = 0.406

Therefore, the expectation of having minor than three breakdowns between 10.30 a.m. and 12.30 p.m. is nearly 0.406 or 40.6%.

(ii) To calculate the expectation that the interval middle from two points two successive breakdowns is inferior 30 minutes, we need to feel the exponential distribution, that is often guide the interarrival times in a Poisson process.

In a Poisson process, the interarrival periods follow an rapid change distribution accompanying a rate parameter (λ) equal to the average rate of occurrences.

The average rate of breakdowns is given as two per period. Since the exponential disposal is defined in agreements of the rate parameter, we can reckon the probability as follows:

P(break < 30 minutes) = 1 - e^(-λt)

place t is the time in hours. In this case, t = 0.5 (30 proceedings is half an hour).

P(pause < 30 minutes) = 1 - e^(-2 * 0.5)

Calculating this verbalization, we find:

P(interval < 30 minutes) = 1 - e^(-1)

Using the rapid change distribution, this odds is approximately 0.632 or 63.2%.

Therefore, the feasibility that the interval betwixt two successive breakdowns is inferior 30 minutes is approximately 0.632 or 63.2%.

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if the united states can produce either 60 barrels of oil or 25 bushels of wheat using all its resources, and china can produce either 30 barrels of oil or 35 bushels of wheat using all its resources, how many barrels of oil will the united states produce after 100% specialization in the good in which it has a comparative advantage?

Answers

In this scenario, the United States has a comparative advantage in producing oil, as it can produce 60 barrels compared to China's 30 barrels. Therefore, if the US specializes in producing oil, it will produce as many barrels of oil as it can using all its resources.

This means that the US will produce 60 barrels of oil after 100% specialization in the good in which it has a comparative advantage. It is important to note that specialization and trade can lead to gains in efficiency and productivity. By specializing in producing the good in which it has a comparative advantage, the US can produce more oil than it would if it tried to produce both oil and wheat. This can lead to lower costs of production, higher profits, and increased economic growth. Additionally, by trading with China, the US can obtain wheat at a lower cost than it would if it tried to produce it domestically, further increasing its economic benefits. Overall, understanding comparative advantage and specialization can help countries make informed decisions about trade and production, leading to increased efficiency, productivity, and economic growth.

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Which of the following is a contract that prohibits specificconfidential, secret, proprietary, and/or personal informationfrom being shared or distributed outside of a specificprescribed set of individuals or organizations? User agreement Continuing education agreement Network agreement Nondisclosure agreement

Answers

The contract that prohibits specific confidential, secret, proprietary, and/or personal information from being shared or distributed outside of a specific prescribed set of individuals or organizations is a "Nondisclosure Agreement" (NDA).distributed.

A nondisclosure agreement is a legally binding contract between parties that outlines the confidential information they will share with each other and restricts its disclosure to third parties. It establishes the terms and conditions under which the recipient of the confidential information agrees to keep it confidential and prevent unauthorized disclosure. NDAs are commonly used in business transactions, employment relationships, and collaborations where sensitive information needs to be protected. By signing an NDA, the parties involved agree to maintain the confidentiality of the specified information and may face legal consequences if they breach the agreement.

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True or False
A Person who works full time for a power company in the energy cluster is considered a consultant.

Answers

Answer:

True

Explanation:

Answer:

False, i took the quiz and got 100% percent- k-12 7th grade career final exam

Explanation:

What do you mean by search of trade?‌Why is it essential?​

Answers

Answer:

trade means buying and selling good and service

Answer:

it takes time,resourses and money to creat and luanch distinctive and affective brands..in most instances,trade searching id an important first step in any trade registration to avoid adopting brans that infrige third-party trademark rights.

the list of current and potential customers that companies maintain for marketing purposes is called a

Answers

A marketing database includes data about potential customers, past customers, and existing customers. Collecting client names and addresses is the simplest step in creating a data warehouse.

Database marketing is the systematic gathering, compiling, and processing of consumer data. A form of direct marketing is database marketing, also referred to as customer relationship management. A firm compiles and maintains customer and potential customer data in a database. Companies that use database marketing as a marketing strategy include retailers, technology suppliers, insurance providers, and other service providers. By acquiring this information, a company can better understand and market to its customers, thus increasing sales. The businesses with a sizable customer base will reap the greatest rewards from this marketing strategy since they will produce more transaction data, which increases the chances of identifying potential customers.

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What is the standard deduction for marry filing joint for tax year 2017?

Answers

Answer: $12700

Explanation:

Standard deduction refers to the portion of income that's not being subjected to tax which can be used in the reduction of the tax bill. It should be noted that the amount of one's standard deduction will be based on the age, filing status, age, as well as some other criteria.

For taxpayers who don’t itemize, it should be noted that the 2017 standard deduction depends on the filing status and this include:

Single = $6,350

Married Filing Jointly = $12,700

Married Filing Separately = $6,350

Head of Household = $9,350

Qualifying Widow(er) = $12,700

Custodial accounts can be opened as? a a cash account only b margin account only c either a cash or margin account d either a joint cash or margin account

Answers

Custodial accounts can be opened as a cash account only.

Custodial accounts are savings account which are set up and administered by an adult for a minor. So the custodial accounts tend to have enormous flexibility with no income, withdrawal penalties or contribution limits.

A custodial account is a financial account which parents manage in their child's name. A custodial account is then irrevocably passed to the child when they become the adults. Custodial accounts have to be opened as a cash account only.

Thus, the custodian of the account controls that how money in the account is spent and invested.

Hence, option A is correct.

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''if there are diminishing returns, the marginal cost curve must be positively sloped '' is true or fall, why?

Answers

Answer to the following question is TRUE.

The given statement "If average cost rises, marginal cost should rise" is correct.

This is because, according to theory, as the estimated price of an item rises, the marginal cost rises more than that rise. And, as the illustration of these two curves shows, when Average Cost grows, so does Marginal Cost.

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Financial transaction or non-financial transaction?

Please help.

Financial transaction or non-financial transaction?Please help.

Answers

Answer:

1.Financial transaction

2.Financial transaction

3.non-financial transaction

4.non-financial transaction

5.Financial transaction

Question #4
Multiple Choice
Values are principles that typically guide or influence an individual's decision-making process. Two
areas of life most often affected or influenced by values include
emotions and reactions
decisions and responses
physical health and feelings
attitudes and behaviors

Answers

The two spheres of life that are most frequently impacted or altered by values are attitudes and behaviors. The correct response is option (4).

Define attitudes and behaviors.

An individual's attitude is defined as their mental perspective, or how they feel or think about someone or something. Behavior describes the actions, motions, conduct, or behaviors of an individual or a group toward other individuals. built upon. Experience and observation.

When people put more focus on their own attitudes and feelings, they tend to act more in line with those feelings, therefore there is a link between attitude and behavior. Additionally, when people feel greater responsibility for their individual actions rather than the actions of a collective, their opinions are more consistent with their behavior.

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If you have $600 and you find an investment that annually yields 3%, how much interest would you earn in 15 years?

Answers

Answer:

$270.00 in 15 years

Explanation:

3% of $600 = $18.00 annually

$18.00 x 15 years = $270.00 interest earned

an employee can be dismissed if their job surplus to requirements' outline why this state ment is false

Answers

Hiring labour is different from buying other goods and services, and the contract between the employer and the employee is incomplete. It does not cover what the employer really cares about, which is how hard and well the employee works.

1, xyz company cost function for the next four month is cost =500000+5Q A, find the BE dollar volume of sale is the selling price is birr 6/unit B, what would be the company cost is it decides to shutdown operation for the next four month

Answers

Answer:

Break Even point Q = 500000

Shut Down Point P < 5

Explanation:

Break Even point is where Total Revenue = Total Cost.

Total cost = 500000 + 5Q, price = 6 (Given) , Total revenue = Price x quantity  

So, TR = TC implies : 500000 + 5Q = 6Q → 500000 = 6Q - 5Q

Q = 500000

Shut Down Point is where firm's Price is < its Average Variable Cost .  

AVC is the variable cost on per unit output, is found out by average of variable component of cost function. C = 500000 + 5Q implies variable cost = 5Q , so AVC = 5Q / Q = 5

So, the firm would shut down if its price would go below AVC , ie if P < 5

.
Explain to NT the reasons why NGO's and CBO'S form part of the market
environment.​

Answers

Answer:

Explanation:

As a result, NGOs can interface easier with the sector and generally have more access to information and resources, while CBOs are formed by people as a way of responding to the needs and challenges facing their communities.  However, in some instances it is the CBOs that do the work the NGOs receive funding for

The reason for NGO and CBOS for part of the market environment should be explained below.

Reasons:

Since NGOs could interface easier along with the sector and normally have more access to information and resources, while on the othe rhand CBOs are created by people this represent responding to the needs and challenges that are faced by the communities.  But, in some situations,  it is the CBOs that do the work the NGOs collecting the funding.

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Andrew is a software tester. He runs through the same kinds of programs day after day, looking for bugs and reporting them. The workers in another department look at Andrew's reports and do the programming needed to fix the problems; Andrew never knows if his reports result in any software changes. Andrew is taking night classes in programming. Often, he knows the best solution for many of the bugs he finds, but is forbidden to make the fix or even offer suggestions. Which part of this description relates most to Task Identity

Answers

Answer: The workers in another department do the programming needed to fix the problems

Explanation:

Every organization has job roles and task for which individuals where employed for and in most cases workers are not really permitted to do beyond their task unless they are asked to do so by the organization or they are asked by their colleagues to assist them, despite Andrew taking classes in software training, he would still need approval from the organization before he can carry out task in another department.

Because susans standard deduction is greater than the amount she made, it turns out that Susan never owed taxes. How large of a refund should she expect from the Federal
government if she follows through on filing her 1040 form

Answers

Note that if Susan's standard deduction is greater than the amount she made, it means her taxable income is zero. If she had any taxes withheld from her paychecks throughout the year, she would be eligible for a full refund of those taxes.

What is the rationale for the above response?

Assuming Susan is a single taxpayer under the age of 65 and not claimed as a dependent on anyone else's tax return, her standard deduction for tax year 2022 (filing in 2023) would be $12,950.

If Susan's total income for the year is less than or equal to $12,950, she would owe no federal income tax and would be eligible for a full refund of any federal income tax withheld from her paychecks or estimated tax payments she made throughout the year.

The exact amount of her refund would depend on how much federal income tax was withheld from her paychecks or paid in estimated tax payments throughout the year. Susan can determine the amount of her refund by completing her tax return using Form 1040 and any other applicable forms and schedules.

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You own a construction business and need to hire workers to build a house and add one worker at a time to the added contribution of each worker. At what point will you stop hiring workers ? Relate this process to the three stages of production function as you explain your answer .

Answers

The point at which you will stop hiring workers will depend on the marginal product of labor, which is the additional output that is produced by adding one more worker. In the short run, the marginal product of labor will initially increase as more workers are added, but it will eventually reach a point of diminishing returns, where the marginal product begins to decline. This occurs because at some point, the additional workers will not have enough resources (such as tools and materials) to work with, and the production process will become less efficient.

In the long run, all inputs are variable, so the marginal product of labor will continue to decline as more workers are added. Eventually, the marginal cost of hiring additional workers will exceed the marginal benefit, and it will no longer be profitable to hire more workers.

In the context of a construction business, you would likely stop hiring workers when the marginal product of labor begins to decline, or when the marginal cost of hiring additional workers exceeds the marginal benefit. This decision would be based on your analysis of the costs and benefits of hiring more workers, and your assessment of the efficiency and productivity of your construction process

What type of account is recommended for unexpected expenses?

Answers

Answer:

emergency fund

Explanation:

100 points please help. let’s say eur/usd is trading at=1.1872. So if I have a forex account worth 100$ and I use a leverage of 1:100 I have 10000$ of buying power so if buy a mini lot of eur/usd. Do I only need to pay 10k or the quote price which would be 11872$ that I need to pay?

Answers

Answer:

With 100:1 leverage a trader can open a position 100 times greater than they could without leverage. For example, if the cost to purchase . 01 lots of EUR/USD is normally $1000 and the broker offers 100:1 leverage, then the trader must put up only $10 as margin.

Explanation:

Read the graph from "Career Planning for High Schoolers. " Bar graph of occupations from 2013. According to the graph, what is the approximate annual mean wage for gaming managers? $75,000 $100,000 $80,000 $45,000.

Answers

The annual mean wage for the managers that was illustrated in the graph is A. $75000.

From the chart, it can be seen that the approximate annual mean wage for gaming managers is $75,000.

From the complete information, it should be noted that the main conclusion that can be deduced from the information on the chart is that majors in engineering and technology lead to above-average salaries.

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Answer:

THE ANSWER IS 75,000 DOLLARS WAGE IN THE GRAPH.

Explanation:

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In addition to saving money, what are some other ways you can show financial responsibility?

Answers

Answer:

you could start a savings a acount or a 401k plan to help with future problems or you could save for a new car.

Explanation:

Stabilize your income. If you're a young person, get a job.
Set financial goals. Take a few minutes to set some money goals.
Educate yourself. Financial savvy is not something you're born with.
Make a budget.
Save money.
Learn about employment benefits.
Establish a credit profile.
Avoid expensive debt.
Other Questions
CG just paid a dividend of $1.60 per share. The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock = 12.5%. Estimate the stock's value per share one year from today Answer With Explanation:-Which of the following items would not be considered a red flagwhen an underwriter is verifying employment?a Time gap between current and previous employmentb Incomeout Triangular Chemicals has total assets of 92 million, a returnon equity of 40 percent, a net profit margin of 5.2 percent, andan equity multiplier of 2.53 . How much are the firm's sales? The number of members f(x) in a local swimming club increased by 30% every year over a period of x years. The function below shows the relationship between f(x) and x:f(x) = 10(1.3)xWhich of the following graphs best represents the function? (1 point)a Graph of f of x equals 1.3 multiplied by 10 to the power of xb Graph of exponential function going up from left to right in quadrant 1 through the point 0, 0 and continuing towards infinityc Graph of f of x equals 10 multiplied by 1.3 to the power of xd Graph of f of x equals 1.3 to the power of x In April, the party and occasions department had an opening inventory at 57,000 at retail. The sell thru percentage rate for April was 28 %, and the closing stock was 49. 0. What were the net sales in the department during the month of April Hormone pathways involved in maintaining homeostasis (such as the secretin pathway in the digestive tract) are often characterized by which of the following?Question 5 options:Local regulators such as prostaglandinsG protein-coupled receptorsPositive feedbackMultiple types of receptorsNegative feedback An architect wants to reduce a set of blueprints to make a portable set for easy access. The original dimensions of the blueprints are 24 inches by 36 inches. She reduces the blueprints by a scale factor of 13. She then decides that the reduced blueprints are a little too small and enlarges them by a scale factor of 1.25. Will the final image fit in a similar portfolio with an area of 160 square inches? Justify your response.