S. Bouchard and Company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.85; P0 = $22.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $34.00. Based on the DCF approach, by how much would the cost of equity from retained earnings change if the stock price changes as the CEO expects? Do not round your intermediate calculations.

Difference = -1.45%

Explanation:

As per the data given in the question,

                                Old price          New price

D0                               $0.85              $0.85

P0                               $22.00            $34.00

g                                   6.00%              6.00%  

D1 = D0 × (1+g)             $0.901             $0.901  

rs = D1 ÷P0 + g             10.10%            8.65%

We can calculate the difference by using following formula:

Difference = rs (old price) - rs1 (New price)

By putting the value, we get

= 8.65% - 10.10%

= -1.45%

the correct answer is - no.

winnipeg, canada, is not further away from the equator than moscow, russia, in fact moscow is the city that is further away from the equator. moscow is on a latitude of 55.7558° north, while winnipeg is on a latitude of 49.8951° north, thus putting moscow by 5.8607° further away from the equator than winnipeg is.

answer; property tax payment made in july and december;