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
melisa1 [442]
3 years ago
11

This morning, you purchased a stock that will pay an annual dividend of $1.90 per share next year. You require a 12 percent rate

of return and the dividend increases at 3.5 percent annually. What will your capital gain be in dollars on this stock if you sell it three years from now?
Business
1 answer:
Zina [86]3 years ago
6 0

Answer:

$2.4302 per share

Explanation:

The computation of the capital gain in dollars is shown below:

Price at the end of third year - price of share now

where,

Price at end of 3 year = Dividend year 4  ÷ (0 .12 - .035)

                                   = $2.10656 ÷ 0.085

                                   = $24.7831 per share

The Dividend of year 4 is come from

= $1.90 × (1 + .035 )^3

= $1.90 × (1.035)^3

= $2.10656

And,

Price at end of 3 year is

= Dividend at year 4  ÷ ( .12 - .035)

= $2.10656 ÷ .085

= $24.7831 per share

And,

Price of share now is

= $1.90 ÷ (.12 -.035)

= $1.90 ÷ .085

= $22.3529

So,

Capital gain is

= $24.7831 - $22.3529

= $2.4302 per share

You might be interested in
Blake is seeking to buy a mare that he can breed. Levi tells Blake about a horse that Levi wants to sell, stating that he (Levi)
kondaur [170]

Answer and Explanation:

From the following given case or scenario, we can state that Blake's lawsuit in order to rescind contract, it is more likely that the court might allow this rescission which was based on the mistake of the fact.  Here, in this particular case the fact being that Levi did not provide Blake with the correct facts and thus the transaction was based on wrong fact. Therefore, a rescission is more likely to happen.  

3 0
3 years ago
Which of the following best explains why unions give workers more power in contract negotiations? A. Employers aren't legally al
hram777 [196]

Option D

Employers can't fire an entire union because of the difficulty of replacing every worker best explains reason for unions give workers more power in contract negotiations

<h3><u>Explanation:</u></h3>

One of the numerous significant advantages of getting collectively with your co-workers to create a union is obtaining the accuracy and protection of a union contract. A union contract is a printed contract among the employer and the employees that describes the phases and advantages in a sinless and legally-binding way.

The ability to be capable to recommend policy reforms or raise problems with a company as a whole preferably of just practicing them alone to a manager. A contract is not deemed to be in force till the membership has voted to approve it.

5 0
3 years ago
Read 2 more answers
In situation with high risk,credit might create further problems for the borrower.explain.​
rewona [7]

Answer:

Yes, In situation of high risk credit will create more problem due to bankruptcy.

Explanation:

I Think if business will buy more credit in times of high risk then business will end up in stage of bankcruptcy because in that situation business will making poor profits and no revenue so it won't be able to pay back debt.

3 0
3 years ago
On January 1, a machine with a useful life of five years and a residual value of $80,000 was purchased for $240,000. What is the
Alex17521 [72]

Answer:

$57,600

Explanation:

The computation of the depreciation expense under the Double-declining balance method is shown below:

First we have to find the depreciation rate which is shown below:

= 1 ÷ useful life

= 1 ÷ 5 years

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $240,000, so the depreciation is $96,000 after applying the 40% depreciation rate

And, in year 2, the $144,000 × 40% = $57,600

The $144,000 is come from

= $240,000 - $96,000

= $144,000

3 0
3 years ago
Identity errors, incorrect account details, and fraudulent accounts are the most common credit report errors. What should you do
Lostsunrise [7]

Answer:

The correct answer is letter "A": You should dispute the error with a credit agency or with a bank/lender and locate any receipts or other written proof that the data is not correct.

Explanation:

It is important to review your credit report frequently to spot errors. In such cases, you must the corresponding financial institutions to make the corrections necessary. If proof is needed you should send it. The objective is to <em>keep your information as accurate as possible</em> so your credit rating can increase every year.

4 0
3 years ago
Other questions:
  • Why have many nations chosen to use taxpayer dollars to subsidize primary, secondary, and higher education
    6·1 answer
  • Azeem is considering the various options available to him to promote an energy drink, Turbozade, that has decreasing sales volum
    6·1 answer
  • You collect 96 customer comment cards, 21 online surveys, and 43 surveys from people passing in front of your restaurant. What i
    12·1 answer
  • Human capital is the improvement in _____ created by ____
    14·1 answer
  • Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of ea
    12·1 answer
  • Using weighted average, the cost of goods sold for the sale of 23 units on July 31 is ____ and the inventory balance at July 31
    14·1 answer
  • A bridge on a prominent public roadway in the city of Springfield, Ohio, was deteriorating and in need of repair. The city poste
    12·1 answer
  • A manufacturing firm is deciding whether to invest in a new printer that needs an initial investment of $150,000. This will incr
    10·1 answer
  • Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during
    14·1 answer
  • A company is considering investing in a project that is expected to return $310,000 three years from now. how much is the compan
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!