1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nasty-shy [4]
3 years ago
11

How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends incre

ase by 3 percent annually, and you require a rate of return of 15 percent?
a.8.69%
b.8.54%
c.9.04%
d.9.22%
e.9.45%
Business
1 answer:
anastassius [24]3 years ago
3 0

Answer:

b.8.54%

Explanation:

Use Dividend Growth model to calculate the rate

Dividend =D1 = $1.03

Rate of return = k = 15%

Growth rate = g = 3%

Formula

Cost of Capital = D1 / k-g

Cost of Capital = 1.03 / 15%-3%

Cost of Capital = 1.03 / 12%

Cost of Capital = 8.58%

The closest answer is 8.54%, as no option matches with the answer.

You might be interested in
Which statement below is​ FALSE? A. ​Mintzberg's notion of​ "crafting" strategies embodies the artistic​ model, which suggests t
OlgaM077 [116]

Answer:

D

Explanation:

3 0
3 years ago
Which of the following examples demonstrates the law of demand?A) Mary buys fewer Milky Ways at $0.80 per Milky Way after the pr
777dan777 [17]

Answer:

The correct answer is letter "C": Kelvin buys more donuts at $0.80 per donut than at $0.95 per donut, other things equal.

Explanation:

The demand law states that if the price of a good or service decreases, the quantity demanded for that good or service will increase. On the other hand, if the price of a god or service increases, the quantity demanded will decrease. The price-quantity demanded of the demand law is inversely proportional, <em>ceteris paribus</em>.

Thus, Kelvin's case is an example of the demand law since he purchases more donuts when the price is lower ($0.80) and purchases fewer donuts when the price is higher ($0.95).

4 0
4 years ago
The responsibility report for the Augusta Division shows budgeted contribution margin of $2,000,000 and budgeted controllable fi
Mumz [18]

Answer:

D) is 20% above expectations.

Explanation:

The Augusta Division was supposed to earn a net profit of $1,000,000 (= $2,000,000 - $1,000,000). Since the division's manager and his/her team were able to cut reduce fixed costs to $900,000 and increase contribution margin to $2,100,000 (either by increasing selling price or reducing variable costs), then the division earned a net profit of $1,200,000 (= $2,100,000 - $900,000). This net profit is 20% higher than expected, therefore the manager's (and his/her team's) overall performance was 20% above expectations.

5 0
4 years ago
"true or false: effective communication involves not only sending information but also receiving it."
goblinko [34]
True...........!!!!!!
4 0
3 years ago
The latest version of the surgeon general reports recommends ________ for the promotion of health.
Scrat [10]
The answer is Regular and Moderate to High Physical Activity


While generally accepted as good for health, medical professionals have conducted extensive research and recommended that the best way to promote health is to regularly exercising, especially at a moderate and high level physical activity.

This means, simple walking is not going to be enough.
We need to exert our bodies to some extent regular to optimal fitness.

Regular exercise is said to reduce to risk of diabetes, heart problems, various types of cancers etc.
8 0
3 years ago
Other questions:
  • If the government removes a tax on a good then the quantity of the good sold will
    10·1 answer
  • A man earns Rs.450 in a month and spends 85% of his income.what does he save?
    8·1 answer
  • Price discrimination Question 29 options:
    14·1 answer
  • Of the world's population of 7.5 billion people, _________ are scraping by on incomes that average less than $2 per day.
    14·1 answer
  • A statement of cash flows ...
    7·1 answer
  • Mackie Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians p
    6·1 answer
  • Select the correct answer.<br> A teacher is an example of a social type.<br> A. True<br> B. False
    7·1 answer
  • Use the information below to answer the following questions.
    13·1 answer
  • What is one way the government tries to attain positive externalities?
    12·1 answer
  • the interdependecy of transportation, distribution, communication, and economic networks across international borders
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!