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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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The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the
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Answer: Control Systems

Explanation:

Control systems in business are procedures designed to evaluate, monitor, regulate, supervise and ascertain whether organisational strategies, plans and structures are working efficiently and effectively. It also ensure assets and resources are checked and well documented to avoid things going missing.

7 0
3 years ago
What are the 3 Skills listed for a roofer?
Stels [109]

Answer: A

Explanation:

5 0
3 years ago
Read 2 more answers
Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at
Ivenika [448]

Answer:

c) $110,000

Explanation:

The computation of the borrowing amount is shown below:

= Value of home × given percentage - current mortgage amount

= $200,000 × 80% - $50,000

= $160,000 - $50,000

= $110,000

For computing the accurate value, we have to deduct the current mortgage amount from the net value of home.

Since only 80% is related to the home value so we take only 80% and rest 20% would be ignored.

7 0
3 years ago
Brendan and sean combined their love of baseball with a business venture. they purchased a small cart and began selling memorabi
EastWind [94]

Answer:

The correct answer is C

Explanation:

Environmental Circumstance is the term which is defined as the any circumstances which is forming the grounds of any alleged violation or liability under the Law or Permit of Environmental.

Under this situation, both of them started a business, which performed well in its 1st year, but in the second year the business does not perform well due to the horrible record of team and poor economic conditions. Therefore, this condition will be explained as the environmental circumstances are tough to control as well as are dynamic in nature.

8 0
3 years ago
Use the following information to answer this... Use the following information to answer this question. Windswept, Inc. 2010 Inco
prisoha [69]

Answer:

The Quick ratio: 0.86:1

Explanation:

The question is completed first as follows:

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 270 $ 300 Accounts payable $ 1,530 $ 1,485 Accounts rec. 1,080 980 Long-term debt 1,140 1,340 Inventory 1,930 1,755 Common stock $ 3,420 $ 3,370 Total $ 3,280 $ 3,035 Retained earnings 680 930 Net fixed assets 3,490 4,090 Total assets $ 6,770 $ 7,125 Total liab. & equity $ 6,770 $ 7,125 What is the quick ratio for 2010?

Solution:

The requirement is to use the given information to calculate Windswept Inc's Quick ratio for 2010.

Quick ratio: this represents the ability of an organisation's short term liquidity to cover and cater for its short term obligation. Basically, it looks at the ratio of the current assets of an organisation (those that can be quickly converted to cash) to meet the current liabilities.

The formula for quick ratio= Current Assets - Inventory / Current Liabilities

Windswept's quick ration = Cash + Accounts receivable / Accounts Payable (all for 2010)

= $300 + 980 / $1, 485

= $1,280/$1,485

= 0.86:1

This means that the current asset of the company can only cover its current obligations up to about 86%. This is the quick ratio.

5 0
3 years ago
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