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Savatey [412]
1 year ago
12

A stock is expected to maintain a constant dividend growth rate of 4.3 percent indefinitely. if the stock has a dividend yield o

f 5.6 percent, what is the required return on the stock?
Business
1 answer:
Thepotemich [5.8K]1 year ago
7 0

The required return on the stock is 9.9%.

Stock:

  • A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
  • Stocks represent ownership in a publicly traded company. You take a stake in a firm when you purchase its shares. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.
  • Stocks are not actual assets; they are financial assets. Paper assets that are easily convertible to cash are referred to as financial assets. Real assets have inherent worth because they are tangible.
  • The required return on the stock=dividend yield + Growth rate
  • which is equal to' =(4.3+5.6)
  • =9.9%

Learn more about Stock here brainly.com/question/1193187

#SPJ4

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Which of the following people would be happy with a $10 price ceiling in this market for movie theatre popcorn bags?
dalvyx [7]

Answer:

producers of the bags of popcorn because they will sell more to the movie theater

4 0
3 years ago
Joyce works hard and puts in many extra hours. For this, she can anticipate a pay raise, a promotion, or an expanded sales terri
Alex17521 [72]

Answer:

Expectancy theory

Explanation:

Expectancy theory states that when an individual is faced with different choices they will be motivated in a certain way in choosing a particular option based on what they expect to be the result of the choice.

So behaviour is affected by perceived result or consequence of a particular choice.

In the given scenario Joyce works hard and puts in many extra hours, and getting a promotion is most important to Joyce.

So because of her expectations that manager must recognise that:

(1) she is putting in hard work and long hours to obtain a promotion,

(2) what motivates Joyce will change over time (if she does not get the promotion), and

(3) he must clearly show Joyce how to attain the desirable reward.

7 0
3 years ago
Variable Costing—Sales Exceed Production The beginning inventory is 14,500 units. All of the units that were manufactured during
blagie [28]

Answer:

a. Variable costing income from operations <u>is greater than </u>absorption costing income from operations.

b. $870,000

Explanation:

a. Under Variable costing, only the variable manufacturing costs are apportioned to the units produced.

Cost under Variable costing are;

= 114 * 14,500

= $‭1,653,000‬

Under Absorption Costing, both fixed and variable costs are apportioned to the units produced.

Cost therefore is;

= (114 + 60) * 14,500

= $‭2,523,000‬

Variable costing income from operations is greater than absorption costing income from operations because Absorption costs yields more cost.

b.= Absorption cost - Variable cost

= ‭‭2,523,000‬ - 1,653,000‬

= $870,000

<em>Variable costing income from operation will be $870,000 higher than Absorption costing income from operations.</em>

5 0
3 years ago
Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.
Dmitry_Shevchenko [17]

Answer:

The answers are in the attachment below.

6 0
3 years ago
Currently digby is paying a dividend of $19.67 (per share). if this dividend were raised by $3.64, given its current stock price
umka2103 [35]

The dividend yield for Digby is $23.33

<h3>What is Dividend Yield?</h3>
  • A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
  • Price/Dividend, often known as the dividend yield ratio, is the counterpart of dividend yield.
  • The amount of money a firm pays shareholders for owning a share of its stock divided by its current stock price is known as the dividend yield, which is represented as a percentage.
  • The majority of mature corporations pay dividends.
  • The dividend yields of businesses in the consumer goods and utility sectors are frequently greater than average.
  • The dividends from real estate investment trusts (REITs), master limited partnerships (MLPs), and business development corporations (BDCs) are taxed more heavily than the typical dividend.

Explanation:

Given that

Dividend per share = $19.69

Increase in Dividend = $3.64

Using this formula

Dividend yield = Dividend per share + Increase in Dividend

Dividend yield = $19.69+$3.64

Dividend yield =$23.22

Therefore the Dividend yield will be $23.22

To learn more about Dividend yield with the given link

brainly.com/question/28044310

#SPJ4

6 0
2 years ago
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