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Stolb23 [73]
3 years ago
5

The next dividend payment by GMR Enterprises will be $1.82 per share with future increases of 2.8 percent annually. The stock cu

rrently sells for $38.70 per share. What is the dividend yield
Business
1 answer:
In-s [12.5K]3 years ago
4 0

Answer:

4.70%

Explanation:

According to the given situation, the computation of dividend yield is shown below:-

Dividend Yield = Expected dividend ÷ Current price

where,

expected dividend is $1.82

And, the current price is $38.70

Now place the values to the above formula

So, the dividend yield is

= $1.82 ÷ $38.70

= 0.0470

or

= 4.70%

Therefore for computing the dividend yield we simply applied the above formula.

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Assume that the corporate tax rate is 34% and the personal tax rate is 30%. The founders of a newly formed business are debating
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Answer:

b. 23.8%

Explanation:

For computing the percentage difference, we have to compute the Pre-tax income of both corporations and the partnership

For corporations:

Pre-tax income = (1 - corporate tax rate) × (1 - personal tax rate)

                         = (1 - 0.34) × (1 - 0.30)

                         = 0.66 × 0.70

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For partnership:

Pre-tax income = (1 - personal tax rate)

                         =  (1 - 0.30)

                         = 0.70 or 70%

So, the difference would be

= 70% - 46.2%

= 23.8%

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Explanation:

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When there is a change in activity level, then:

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<h3>What happens when activity level changes?</h3>

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