1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nostrana [21]
4 years ago
11

Determine the required rate of return for Johnson and Johnson​, assuming the geometric growth rate was 13.04​% for the period​ 2

001-2010, its trading price on January​ 14, 2011 was ​$62.55​, and the dividend for 2010 was ​$2.110.
Business
2 answers:
Inessa05 [86]4 years ago
7 0

Answer:

13.08%

Explanation:

Use the dividend model to calculate Required return

given P=$62.55

         g=13.04%

          D0=2.110

           r=?

The formula P=D1/r-g

 First calculate D1 =2.110×1.1304

                               =2.385

substitute in the formula and solve for r

62.55 = 2.385/r-13.04

Cross multiply we get

62.55r-815.652 = 2.385

62.55r=818.037

62.55r/62.55=818.037/62.55

r=13.078/13.08%

Aleks04 [339]4 years ago
5 0

Answer:

The required rate of return for Johnson and Johnson is 16.85%

Explanation:

Johnson and Johnson paid an annual dividend of $2.110 last year, the geometric growth rate was 13.04​ percent during last ten years.

To find out the expected dividend to be paid be Johnson and Johnson this year.

= [$2.110(1.1304)]

= $2.385

Required Rate of Return is calculated by the following formula,

R = \frac{expected dividend}{current share price} + growth rate for dividend

R = 2.385/62.55 + 0.1304

R = .1685, or 16.85%

You might be interested in
The unadjusted balance of the company's Cash account was $26,620 at the end of June. The bank statement shows a balance on June
tatyana61 [14]

Answer:

Adjusted bank and book balance is $25,960 and $25,960 respectively

Explanation:

                                 Bank statement balance       Book balance

Opening balance            26,960                                  26,620

Add:                          <em>Deposit in transit                    Interest earned    </em>

                                         3,000                                  150

Less:                  <em>Outstanding check</em>                           <em>Error on check </em>

                                        4,000                      (4,900 -4,090) = 810

Adjusted Balance         $25,960                                   $25,960

8 0
3 years ago
How will I apply abm learning strands in real life?
valentinak56 [21]

Answer:

you are the cutest member at brainly have a nice day

6 0
3 years ago
On june 25, ritts roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. on july 9, ritts acc
Ket [755]

The answer is $275,000 this is because this is the last accepted offer on the land. All others are appraisals or offers but not the recorded value of the land.

3 0
3 years ago
Read 2 more answers
The country of Argonia imposes an ad valorem tariff of 10 percent on 1 million tons of rice imports, after which an out-of-quota
Igoryamba

Answer:

B. Tariff rate quota

Explanation:

B. Tariff rate quota - it is comprised of two policy instrument i.e. import quota and tariff to control and regularized imports.  

Tariff rate quota implies a limitation on the number of goods that import from a foreign country.  it is applied for certain period of time.

In the same way, Argonia imposes a 10% tariff on imports of 1 million rice.

6 0
3 years ago
Economist and politicians argue that few policies regarding trade restriction can help to create domestic job, increase GDP and
Gemiola [76]

Trade Protectionism helps to create domestic jobs, increase GDP and make a domestic economy more competitive globally.

<h3>What is trade protectionism?</h3>

Trade protectionism is described as when a country, or occasionally a collection of countries working together as a trade bloc, erects commerce barriers with the express purpose of defending its economy from potential risks associated with global trade.

Strategies that can be used for this purpose are:

  • Tariffs, which are taxes on imports from other nations and international markets, are one tactic that can be employed for this aim. Here, the government is enforcing the tariff in an effort to limit the importation of products and services from abroad, safeguard its own industries and businesses that produce these things, and increase tax revenues.
  • Quotas are specific limitations on the volume of a given class of goods, commodities, and products that may be allowed to be imported into a country. A particular group of people or businesses are typically granted import licenses in order to comply with this import quota.
  • subsidies: Government payments to domestic producers are known as subsidies. This can take the form of monetary compensation, loans with low or no interest, tax deductions, or government ownership of common stock in domestic corporations.
  • A country may impose local content requirements by establishing a manufacturing standard requiring that a specified part or parts of a product be manufactured domestically in an effort to reduce imports.
  • Administrative trade policies are composed of laws, rules, and regulations that are intended to make it extremely difficult for someone to import goods or commodities into a specific country.
  • Antidumping laws are put in place by a country to stop products from being sold in foreign markets for significantly less than their manufacturing costs in an effort to capture a sizable portion of that market.
  • By reducing the value of a country's currency in the foreign exchange markets, exchange rate controls can be used to lower the price of a country's exports.

To know more about Trade Protectionism refer to: brainly.com/question/27622280

#SPJ10

3 0
2 years ago
Other questions:
  • EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty
    15·1 answer
  • Given the following information, determine the amount of Cash on the balance sheet (assume there are only three assets). Liabili
    15·1 answer
  • Company managers connect values to the chosen strategic vision by combining the company's values and mission/business purpose in
    15·1 answer
  • Mark, the sales manager at Lance Motors has called for a meeting with all his sales representatives. He wants to give them feedb
    14·1 answer
  • What type of economy does sri lanka have?
    8·1 answer
  • According the kinked demand curve model:
    9·1 answer
  • Examine the credit terms below
    5·1 answer
  • Identify the product produced by Vodacom​
    10·1 answer
  • PLEASE HELP ME I WILL MARK BRAINLIEST
    5·1 answer
  • Who is the primary regulator over the<br> mortgage banking industry?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!