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
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p
lesya692 [45]

Answer and Explanation:

a. The preparation of the sales budget is prepared below:-

                                            <u>Sonic Inc.</u>

                                          <u>Sales budget</u>

<u>Particulars          </u>Unit  Sales<u>           Unit Selling price     Total Sales </u>

                              <u>Volume</u>

Model Rumble:    

East Region          12,000                 $60                        $720,000

West Region         14,000                 $60                        $840,000

Total                                                                                 $1,560,000

Model Thunder:    

East region             3,500               $90                           $315,000

West region            4,000               $90                           $360,000

Total                                                                                   $675,000

Total revenue from sales                                                  $2,235,000

To reach the total revenue from sales we simply added the total of model rumble with a total of model thunder.

b. The Preparation of the production budget is shown below:-

                                               <u>Sonic Inc.</u>

                                          <u>Production budget</u>

<u>Particulars </u>                    Units Model            Units Model

                                         <u> Rumble</u>                    <u>Thunder </u>

Expected units to be

sold                                       26,000                    7,500

                                     (12,000 + 14,000)      (3,500 + 4,000)

Add: Desired ending

inventory                                500                             250

Total units required               26,500                       7,750

Less: Beginning inventory      750                            300

Total units to be produced    25,750                     7,450

So, to reach at total units to be produced we simply deduct the beginning inventory from total units required.

7 0
3 years ago
Which of the following is an example of a successful effort at branding?
ruslelena [56]

The correct answer is B. The word "google" has been added to the dictionary.

Explanation:

Branding implies making the name, symbol, and purpose of a company identifiable for the customers. This means, the customers known the purpose of the company, its products, and they can easily remember the name of it, which is important to make a company stood out over similar companies. Additionally, branding often implies customers associate any element of the company with positive ideas.

Branding can be seen in the case of Google company and the fact the name of the company was added to the dictionary because this shows the name of the company and products of it are identified by thousands of consumers, which shows how effective was the branding strategy of the company to define the identity of the company and convey this idea to customers.

7 0
3 years ago
The four conditions (mutual exclusion, hold and wait, no preemption and circular wait) are necessary for a resource deadlock to
Evgen [1.6K]

Explanation:

The conditions sufficient for a resource deadlock to occur is when a  deadlock will  prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

Solution

Deadlock conditions

A deadlock is a situation where two or more processes request for same critical resource at the same time.

The mutual exclusion applies a restriction to a resource when the resource is used by any process, it should become unavailable for the other resources

The hold and wait allocations explains that any process which is allocate resources must hold them; till all needed resources are nor sure.

In the meantime, if any other processes need a resource which is held by another process, then the latter will release the resource to prevent deadlock.

No pre-emption states that the operating system can grant access to resources to another process while it is in use by another process; depending on the priority , to prevent deadlock.

Circular wait should not be implemented so that resources being requested by process are allocated when they get free.

Now,

Three processes A, B, and C functions on a system, having two distinct resources R and S.

The resource  R has one instant active while resource S has two instances available.

The instance of R is allocated to a process A after request. first instance of resource S is allocated to process B, and second instance of resource S is allocated to process C.

When a request is placed by process B for resource R, then the resource is not available for execution. the process A request for resource S which is used by both C and B.

All the four conditions prevail in this situation; yet deadlock does not occur.

The resource S is released by process C and is allocated to process A. when process A finishes, it releases resources and resources R is allocate d to process B.

Hence all three processes end without a deadlock.

However, the deadlock will prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

5 0
3 years ago
Tasha is a court reporter for a federal district judge. Her job is to type every word that is stated on the record during a fede
ladessa [460]

Answer:

legal services

Explanation:

4 0
3 years ago
Read 2 more answers
g Oriole Company had actual sales of $1100000 when break-even sales were $660000. What is the margin of safety ratio? 67% 40% 33
Sonbull [250]

Answer:

40%

Explanation:

Oriole company has an actual sales of $1,100,000

The break even sales is $660,000

Therefore, the margin of safety can be calculated as follows

= Actual sales-break-even sales/actual sales

= $1,100,000-$660,000/$1,100,000

= $440,000/$1,100,000

= 0.4×100

= 40%

Hence the margin of safety is 40%

3 0
4 years ago
Other questions:
  • The price that consumers pay for a product is called the ____________. A. Unit price B. Fixed price C. Wholesale price D. Retail
    8·1 answer
  • If the economy were encountering a severe recession, proper monetary and fiscal policies would call for:
    8·1 answer
  • Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen
    6·1 answer
  • The flexible budget variance is the difference between the​ ________.
    13·1 answer
  • For all practical purposes, listed stock options always expire
    13·1 answer
  • Which statement is not true about the minimum wage?
    7·1 answer
  • Troy filed a good faith complaint of discriminatory harassment against his supervisor, Cynthia. One day after receiving notice o
    12·1 answer
  • The social security deduction is 6.2 percent of a person's salary up to a limit of 102k the medicare deduction ais up to 1.45 pe
    14·1 answer
  • Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as
    6·1 answer
  • Which of the following statements are true about recession?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!