Required return on equity, Financial Accounting

Assignment Help:

Q. Required return on equity?

Required return on equity

2435_Required return on equity.png

Where D1 = Next year's dividend

g = Dividend growth rate

Po = Market price of share

r = Percentage required return

g = 4√ (12/8) - 1

= 0·1067 or 11%

D1 = 12 × 1·11

= 13·32 cents i.e. 13 cents

R = (13/160+ 0.11) × 100

= 19·125%


Related Discussions:- Required return on equity

What role does accounting play in the planning, What role does accounting p...

What role does accounting play in the planning, implementation, analysis of CSR in particular and organizational strategies in general?

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

Prepare the contract account, During its financial year ended 30 June 20x7 ...

During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

Generates the state dependent cash flows, Consider an economy with three st...

Consider an economy with three states which occur with probability (0.2, 0.4, 0.4). Suppose a firm has a project which generates the state dependent cash flows (100, 200, 200) at t

Prepare the journal entry at the date of the bond issuance, On January 1, 2...

On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January

Compute the total of amount of assets, Balance Sheet Classifications and Re...

Balance Sheet Classifications and Relationships: Shelley and Co. has the following balance sheet elements as of December 31, 2012. Land. . . . . . . . . . . . . . . . . . . . . . .

Total cost at each breakeven, Q. The British Mini car was designed by ...

Q. The British Mini car was designed by a team headed by Sir Alec Issigonis in the late 1950's. Describe the process of the design of this product. Consider the context of

Abatement of legacies-executorship laws and accounts, ABATEMENT OF LEGACIES...

ABATEMENT OF LEGACIES (a) If the assets, after the payment of debts, necessary expenses and specific legacies, are not sufficient to pay all the general legacies in full, the l

Impairment of Long-lived assets, How to calculate fair value of long-lived ...

How to calculate fair value of long-lived asset when the information about fair value is not available?

Business mathamatics, im doing compound interest my calculator doest have a...

im doing compound interest my calculator doest have anxy butyx cant do nothing with the ten being the power of .9

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd