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statuscvo [17]
1 year 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]1 year 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

#SPJ4

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Basically, these taxes that are being paid by individuals or business firms (entities) is considered as a cash outflow because it represents money that are flowing out of their accounts.

In conclusion, an amount of money that is flowing out of an account such as taxes is referred to as a cash outflow.

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3 years ago
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3 years ago
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Luda [366]

Answer:

$23,000

Explanation:

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Pension expense = service cost + interest cost - expected return on plan assets

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Now the journal entry would be

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