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wariber [46]
2 years ago
8

What is the total return for a stock that currently sells for $100, pays a dividend in one year of $2, and has a constant growth

rate of 8 percent?
Business
1 answer:
Kobotan [32]2 years ago
7 0

What is the total return for a stock that currently sells for $100, pays a dividend in one year of $2, and has a constant growth rate of 8 percent?

Total return will be 10%.

What is total return?

The overall return is shown as a proportion of the initial investment. For instance, a total return of 20% signifies that the asset's value increased by 20% overall as a result of price growth, dividend payments (if the security is a stock), coupon payments (if the security is a bond), or capital gains (if a fund).

R  = 10%

10% is the total return for a stock that currently sells for $100, pays a dividend in one year of $2, and has a constant growth rate of 8 percent.

Learn more about total return here:

brainly.com/question/28165464

#SPJ4

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If d0 = $1.75, g (which is constant) = 3.6%, and p0 = $40.00, what is the stock's expected total return for the coming year?
Orlov [11]

Answer:

The answer is <u>"a. 8.13%".</u>

Explanation:

Given that;

d0 = $1.75

p0 = $40.00

g = 3.6% = 0.036

By using the formula;

Price of the stock = (Dividend this year)(1+g) ÷ (r - g)  

By putting the values;

40 = (1.75)(1+0.036) ÷ (r - 0.036)

r - 0.036 = (1.75)(1.036) ÷ 40

r - 0.036 = 1.813 ÷ 40

r - 0.036 = 0.045325

r = 0.045325 + 0.036

r = 0.081325 = 0.081325 x 100

<u>r = 8.13%</u>

4 0
3 years ago
Read 2 more answers
Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $193 in cash along with recei
exis [7]

Answer:

petty cash fund    440 debit

         cash                           440 credit

--stablishment of the fund--

freight-in                           46 debit

postage expenses           78 debit

miscellaneous expenses 111 debit

cash shortage loss            12 debit

                   Cash                               247 credit

--reimbursement of the fund--

petty cash fund      50 debit

                    Cash                     50 credit

--incerase of the fund to 490--

Explanation:

The petty fund will be stablish using cash, so we decrease cash and create the petty fund.

Then, the expenditures will be against cash, so we don't have to use the petty fund account.

Lastly, to increase the fund we take from the cash account the 50 dollars increase.

5 0
3 years ago
On January 1, 2021, Gridley Corporation had 375000 shares of its $2 par value common stock outstanding. On March 1, Gridley sold
lesya [120]

Answer:

1,075,000

Explanation:

Weighted average numbers of share account the weightage of outstanding numbers of the share in the year based on the outstanding period.

Outstanding Balances

375,000 share  for 2 months

Addition of new 750000 shares on March 1

1,125,000  shares (375,000+ 750,000) for 2 months

Stock dividend of 20% ( 1,125,000 x 20% = 225,000) on May 1

1,350,000  shares (1,125,000+ 225,000) for 3 months

Retirement of 420,000 Shares on August 1

930,000  shares (1,350,000 - 420,000) for 3 months

Issuance of 600000 shares on November 1

1530,000  shares (930,000 - 600,000) for 2 months

Schedule for weighted average numbers of shares is attached please find it.

Download pdf
3 0
3 years ago
True Furniture Co., Ltd. produces desks and cabinets for computers. The production process is largely divided into woodworking a
Tanya [424]

Answer:

??????????????

Explanation:

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4 0
3 years ago
The Central Hydraulic Supply Company is a distributor of hydraulic supplies in the Midwest. Central handles standard fittings, t
Sidana [21]

Answer:

Check the explanation

Explanation:

The Economic Order Quantity EOQ= SQRT(2*D*Co/Ch),

Where Square root, SQRT, D is the annual demand , Co Cost of order and Ch is the cost of holding

Here annual Demand D =20500

Cost of order Co = 50 $

Cost of holding Ch= 20% of Cost of purchasing = 20%*$14 = $2.8

EOQ = SQRT(2*20500*50/2.8) = SQRT(732142.85) = 855 Units

Minimum TAC can be calculated in two ways

1) With Formula , Minimum TAC = SQRT(2*D*Co*Ch) = $2395.83

2) Without Formula , I.e Cost of Oreder+ Cost of Holding

=(20500/855)*$50 + (855/2)*$2.8 = 2395.83

Where 20500/855 is the number of orders, and 855/2 is the average stock

B) If 500 units purchased at a time

Then Number of orders = 20500/500 = 41 orders in year

Total cost ordering = 41*$50 = $2050

Inventory holding cost = Average inventory * holding cost =

= 500/2*$2.8 = 700

the Total/overall annual cost inventory = $2050+$700 = $2750

3 0
3 years ago
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