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statuscvo [17]
2 years ago
13

The next dividend payment by Im, Incorporated, will be $1.87 per share. The dividends are anticipated to maintain a growth rate

of 4.3 percent forever. If the stock currently sells for $37 per share, what is the required return
Business
1 answer:
Makovka662 [10]2 years ago
4 0

The answer is 9.35%.

The required rate of return (RRR) is the minimal return an investor would accept for owning a company's shares in exchange for a certain amount of risk. In corporate finance, the RRR is used to assess the profitability of proposed investment projects.

The RRR is a subjective minimal rate of return; this implies that a retiree will have a lower risk tolerance and hence accept a lesser return than a fresh college graduate with a larger stomach for risk.

Required return=(D1/Current price)+Growth rate

                        =(1.87/37)+0.043

                        =0.0505405405+0.043

                        =9.35% (Approx)

Hence, the required rate of return is 9.35%.

To know more required rate of return click here:

brainly.com/question/24301559

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When a company issues 39,000 shares of $3 par value common stock for $30 per share, the journal entry for this issuance would in
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The journal entry for this issuance would include is $ 10,53,000.00.

A magazine entry consists of the acquisition of machinery with the aid of the country wherein the equipment account could be debited, and the coins account may be credited.

A magazine access is a report of the enterprise transactions inside the accounting books of a enterprise. A well documented magazine entry consists of the best date, amounts to be debited and credited, description of the transaction and a completely unique reference wide variety. A magazine access is the first step within the accounting cycle.

                                                              Debit                                Credit

Number of shares = $ 39,000

cost of per shares = $3

total cash of shares = $ 117000          117000

Common stock ( 39000 * 3 )                                                        117000.00

Paid in capital  ( 39000  shares * 27)                                         10,53,000.00

(To record the issuance of shares at a premium of $ 27)

Learn more about  journal entry here:- brainly.com/question/14279491

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5 0
2 years ago
Which of the following nouns is properly capitalized?
ehidna [41]
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3 years ago
Read 2 more answers
Danube Corp. purchased a used machine for $ 10 comma 000. The machine required installation costs of $ 4 comma 000 and insurance
melamori03 [73]

Answer:

The correct answer is B. $14,500

Explanation:

According to the accounting concept, the machines cost includes all those cost which is related to the machine like -  purchase cost of machine, installation cost of machine, insurance cost,etc.

So,

Total cost of machine = Purchase cost of machine + installation cost of machine +  insurance cost

= $10,000 + $4,000 + $500

= $14,500

Hence, the total machine cost is $14,500 which is to be recorded in the financial statements.

Thus, the correct answer is B. $14,500

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4 years ago
the ____ is a federal government agency that offers both managerial and financial assistance to small businesses
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Initiatives intended to improve an organization's positive impact on society and the natural environment are called:
ikadub [295]

Green marketing initiatives are intended to improve an organization's positive impact on society and the natural environment.

 

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